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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Chapter 4 Case 2: Greetings Inc.: Activity-Based Costing Solution: 1. An activity-based costing system may be appropriate for Wall Décor‚ when overhead allocation based job-order costing provides product cost distortion. As seen on previous case‚ this distortion happens when one product is manufacturing in high volume and the others are manufacturing in complexity as well as in low volume. In this situation Wall Décor should change its costing system for selling its high volume produced
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Developed Balanced Scorecard for Anthony Orchard Anthony Orchard is an apple producing organization that has an objective of attaining $25 million revenue‚ by the end of the year 2015. For this reason‚ in order for the firm to achieve its set goal‚ and then it has to have a systematic plan as well as strategies that will help it achieve its set goals. Because the firm always employees more than 300 employees in a year‚ then it has to employ the use of a balanced scorecard to manage the performance
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OPIM Assignment 4 1. Cu = 24-11 = $13 Co = 11-7 = $4 Critical ratio = 13/(13+4) = 0.7647 μ = 30‚000 σ = 10‚000 Using normal distribution function (=norminv(0.7647‚30000‚10000))‚ the optimum order quantity is 37‚216 jerseys to maximize profit. 2. Quantity = 32‚000 First‚ we normalize the order quantity to find the z-statistic z=Q-μσ=32‚000-25‚00010‚000=0.7 We then look up the standard normal loss function. The expected lost sale is given by. Lz=0.1429 Therefore‚ the expected lost
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Week 4 Homework Solutions: Problem Set 4 1. Determining Profit or Loss from an Investment. Three years ago‚ you purchased 150 shares of IBM stock for $88 a share. Today‚ you sold your IBM stock for $103 a share. For this problem‚ ignore commissions that would be charged to buy and sell your IBM shares. a. What is the amount of profit you earned on each share of IBM stock? The profit on each share of IBM stock was $15. $103 priced when each share was sold‚ $88 priced when each
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The Need for Payroll and Personnel Records: Case Problem C1. Paychecks Kept Coming Ken‚ a salaried employee‚ was terminated from his company in April of this year. Business had been slow since the beginning of the year‚ and each of the operating plants had laid off workers. Ken’s dismissal was processed through the Human Resources Department‚ but the information was not relayed to the corporate payroll office. As had been the policy‚ checks for workers at remote sites were mailed to the employees
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Overview The Casey Anthony Trial is an infamous case globally‚ and is one that even presently covers the headlines of newspapers and tabloid magazines. The case follows the disappearance‚ and murder of two year old Caylee Anthony‚ who lived in Orlando‚ Florida‚ with her mother Casey Anthony‚ and grandparents‚ Cindy and George Anthony. The events of the case all began on July 15‚ 2008‚ when Caylee was reported missing by a 9-1-1 phone call made by her grandmother Cindy‚ thirty-one days after her
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Week 4 Checkpoint March 17‚ 2013 XACC/290 Resource: Ch. 4 of Financial Accounting Complete Exercise BE4-1. Complete Problems 4-2A & 4-3A. BE4-1: |Cash |Net Income | |-$100 |$0 | |-$20 |$0 | |+$1‚300 |$1‚300 | |+$800 |$800 | |-$2‚500 |$0 | |-$600 |$0 | | |
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Criminological Theory: Week 5 (Case Study) ENF 393 Criminal Nature: Submitted by Nicole Bailey Donald Kalamas‚ Instructor Cohort # 14 July 20‚ 2011 Anthony Edward Sowell was supposed to be a low risk inmate after his release from prison in June of 2005. He had served 15 years in prison for rape. Anthony Sowell moved in with family directly following his release. He moved into a Cleveland home on Imperial Avenue. Soon‚ residents started to complain about a pungent odor coming from
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March 2013 Sara Vorhees-Berry English Comp II Outline Ablow‚ Keith R. Inside the Mind of Casey Anthony: A Psychological Portrait. New York City: St. Martin’s‚ 2011. Print. Ashton‚ Jeff. Imperfect Justice: Prosecuting Casey Anthony. New York City: William Morrow‚ 2011. Print. Battaglia‚ Nicholas A. "The Casey Anthony Trial And Wrongful Exonerations: How "Trial By Media" Cases Diminish Public Confidence In The Criminal Justice System." Albany Law Review 75.3 (2012): 1579-1611. Academic
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