PROBLEM SET 4 1) Consider the following utility functions‚ where W is wealth: (a) U (W ) = W 2 1 (b) U (W ) = W (c) U (W ) = −W (d) U (W ) = W (e) U (W ) = ln(W ) (f) U (W ) = W 1−γ ‚ with γ = 2 1−γ How likely are each of these functions to represent actual investor preferences? Why? 2) Suppose investors have preference described by the following utility function with A > 0: U = E(r) − 1 Aσ 2 2 Each investor has to choose between three portfolios with the following characteristics:
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Resource: Ch. 3 of Financial Accounting Prepare written answers to the following assignments from Ch. 3 of Financial Accounting: * Questions 2‚ 3‚ 4‚ & 8 * Exercise E3-7 * Exercise E3-8 2. State two generally accepted accounting principles that relate to adjusting the accounts. Matching principle and revenue recognition principle 3. Rick Marsh‚ a lawyer‚ accepts a legal engagement in March‚ performs the work in April‚ and is paid in May. If Marsh’s law firm prepares monthly
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Problem 9-7 (75 minutes) (LO1 CC3‚ 4) 1. The Afl5.60 per drum general overhead cost is not applicable to the decision‚ since this cost will be the same paying little mind to whether the organization chooses to make or purchase the drums. Likewise‚ the present depreciation figure of Afl3.20 per drum is not an applicable cost‚ since it speaks to a sunk cost notwithstanding the way that the old gear is exhausted and should be supplanted. The cost depreciation of the new gear is an applicable cost‚ since
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3-1 Days Outstanding DSO 20 ADS 20‚000 Days 365 A/R = ADS X DSO 400‚000 3-2 Debt Ratio EM 2.5 Equity Multiplier = 2.5 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Therefor Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60or 60% 3-3 Market/Book Ratio Stock $ 75 Total Assets 10‚000‚000‚000
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Case #06CVD1620-2 Modification This document shall serve as a Modification of the above mention divorce decree‚ agreeable by both parents: Kristen D. Lord (Mother) and Brian L. Lord (Father) concerning the residency and visitation of their two minor daughters; Sierra F. Lord (age 14) and Savannah G. Lord (age 12). Residency Both parents agree that Sierra F. Lord shall reside with her mother for 9th‚ 10th‚ 11th‚ and 12th grade school years. Likewise it is agreed that Savannah G. Lord shall also
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Individual Text Assignment Chapters 5‚ 6‚ and 7 Karen L. Spencer ACC/491 Contemporary Auditing I December 3‚ 2012 Kimberly Jordan‚ MBA Individual Text Assignment Chapters 5‚ 6‚ and 7 Chapter 5 Comprehensive Question 5-30 (Assertions) In planning the audit of a client’s financial statements‚ an auditor identified the following issues that need attention. Required Identify the assertion for items 1 through 11. 1. The allowance for doubtful accounts is fairly presented in amount
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Stock | E(r) | | Correlation Coefficients | 1 | 0.06 | 0.20 | 1 with 2: -0.10 | 2 | 0.08 | 0.10 | 1 with 3: +0.60 | 3 | 0.15 | 0.15 | 2 with 3: +0.05 | A portfolio is formed as follows: sell short $1‚000 of Stock 1; buy $1‚500 of Stock 2; buy $1‚500 of Stock 3. The investor uses $1‚000 of his own equity‚ with the remaining amount borrowed at a risk-free interest rate of 4% (with continuous compounding). (a) Assuming that there are no restrictions on the use of short-sale proceeds
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Problem Set 4 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? a. Any financial asset that can be easily changed into physical money is included in the M1 money supply. b. Because checkable deposits are easily changed into physical money‚ they are included in M1; however‚ savings accounts and Treasury bills cannot be‚ due to the fact that
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26 - 3 Hanson Manufacturing Company Pablo Santacruz For Professor C. E. Reese In partial fulfillment for the requirements for ACC 770 – Managerial Accounting School of Business/Graduate Studies St. Thomas University Miami Gardens‚ Fla. Term A2/ Fall‚ 2014 December 11‚ 2014 Table of Contents Issues: Questions……………………………………………………..…… 3 - 4 Facts………………………………………………………………..……… 5 - 6 Analysis…………………………………………………………………… 3 - 4 Conclusions: Solution and/or Recommendations……………………… 3 - 4 Reference/Citations/Bibliography………………………………
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Exercise 1: Action movies inspire youngster to imitate risky and dangerous acts like car races and stunts. In not less than 350 words‚ discuss this statement by providing justifications and examples. Exercise 2: Reading comics is certainly not educational for the young. How far do you agree with this statement? Give reasons for your answer. You should write at least 350 words. Exercise 3: ‘Parents know best as far as careers are concerned.’ What do you think? You should write at least 350
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