1 Jonah is employed as a joiner by a firm whose main business activity is building houses. The firm also employs bricklayers, plumbers, painters, and other skilled tradesmen. Other factors of production are used when building houses. The owner of the firm, Jack, believes that specialization of labour brings many benefits to the business and its workers. In his spare time, Jonah makes wooden toys that his sister sells on her stall at the local market. He buys the wood and other resources from a local supplier. The wooden toys have been so successful that Jonah has decided to leave his job as a joiner to set up his own toy-making business.

a. Identify two stages of business activity.
b. What is meant by ‘factors of production'?
c. Using the information in the case study, explain the meaning of ‘opportunity cost’.
d. Identify and explain two ways Jonah could add value to his toys.
e. Do you agree with Jack that ‘specialisation of labour brings many benefits to the business and its workers’? Justify your answer.

Rate of return, standard deviation, coefficient of variation personal finance problem mike is searching for a stock to include in his current stock portfolio. he is interested in hi-tech inc.; he has been impressed with the company's computer products and believes hi-tech is an innovative market player. however, mike realizes that any time you consider a technology stock, risk is a major concern. the rule he follows is to include only securities with a coefficient of variation of returns below 1.07. mike has obtained the following price information for the period 2015 through 2018:hi-tech stock, being growth-oriented, did not pay any dividends during these 4 years. a. calculate the rate of return for each year, 2015 through 2018, for hi-tech stock. b. assume that each year's return is equally probable and calculate the average return over this time period. c. calculate the standard deviation of returns over the past 4 years. (hint: treat this data as a sample.) d. based on b and c determine the coefficient of variation of returns for the security. e. given the calculation in d what should be mike's decision regarding the inclusion of hi-tech stock in his portfolio?