The risk-free rate is 6.7 percent and the market risk premium is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $ 161 ,000 invested in a stock that has a beta of 0.5 and the remainder invested in a stock that has a beta of 0.6 […]
The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .31 percent per month. The interest rate in Great Britain is .34 percent per month. The spot exchange rate is £.573, and the three-month forward rate is £.575. Ignoring transaction costs, in […]
A mutual fund in which the portfolio is weighted exactly like the Standard and Poor’s 500 Index or any other market measure is called _____. A) a stock fund B) a balanced fun C) an index fund D) a market fund
1. You intend to import vodka that is produced in Denmark. The strength of the vodka when imported will be at least 80 percent by volume. In the United States, the vodka will be diluted with water, sugar, and flavor to produce flavored vodka with 35 percent alcohol by volume. The is the correct country of origin for labeling […]
Exercise 4: Multipliers Consider a keynesian economy, where MPC = 0.8. Derive the effects of the following shocks on the income, dis- posable income, consumption, private savings, government savings and social savings! a) The government increases its purchases by 200 units. Use also a graph to show the effects! b) The government increases taxes by […]
This is a problem with mutually exclusive projects. You only have to do the net present value method, so you can evaluate the projects separately, or you can combine them. But if you evaluate them separately, the answer you submit must be the difference in the two net present values (see the directions for the […]
An AC adapter for a telephone-answering unit uses a transformer to reduce the line voltage of 120 V (rms) to a voltage of 110 V. The rms current delivered to the answering system is 410 mA. (a) If the primary (input) coil in the transformer in the adapter has 240 turns, how many turns are […]
If 22.0 mL of 0.182 M NaOH solution is added to 100. mL of solution which is 0.100 M in HA (Ka = 5.00×10−5) and 0.100 M in NaA, what will be the pH of the new solution? Enter your answer to four decimal places.
According to “Violent Crime on American Television,” which of the following is true of the way violent criminals are portrayed on TV? TV criminals are more likely to be female than real criminals TV criminals are almost never old TV criminals are rarely portrayed committing murder TV criminals tend to be younger and poorer than […]
3 a. Based on Ruhm’s paper on recessions and health, what happens to mortality when economic conditions gets worse? b. What are Ruhm’s conclusions about potential mechanisms that could explain the negative relationship between aggregate unemployment and mortality?