The following integrated series of questions relates to several sections in the

E. None of the above

Explanation:

The standard reaction function of firm 2 is given as = a-Cb/2b - 1/2*Qa

P = 30 - (Qa + Qb)

where a = 30 b = 1 and C = 3.

Leader's output = (a + Cb - 2Ca)/2b

Leader's output = (30 + 3 - 3*2)/2

                           = 13.5 units.

Reaction function of firm B,

Qb = 30 - 3/2

     = 13.5 - 1/2*13.5

     = 6.75 units.

P = 30 - (13.5 - 6.75)

  = $9.75

Therefore, The price of this new drink in the long run if the industry is a Stackelberg duopoly is $9.75

15.45%

Explanation:

Expected return of portfolio = (R1*W1) + (R2*W2 ) + (R3*W3) (Where R means  Expected Return of stock and W means Weight of stock)

Expected return of portfolio = (15%*0.25)+(18%*0.45)+(12%*0.30)

Expected return of portfolio = 3.75% + 8.1% + 3.6%

Expected return of portfolio = 15.45%

So, the expected return of the portfolio above is 15.45%