Sauder School of Business Finance Division COMM 371 Sep-Dec 2011 Gonzalo Morales Marked Problem Set 2 - Solution Notes 1. First‚ compute the correlation coefficient between assets A and B ρ(RA ‚ RB ) = Cov (RA ‚ RB ) −0.0322 = = −1. σ (RA )σ (RB ) 0.14 × 0.23 The assets are perfectly negatively correlated. Consider portfolio P formed from assets A and B such that you invest α fraction of your wealth into A and (1 − α) fraction into B. The variance of such portfolio is σ (RP
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Carleton University Department of Economics ECON 1000 A – Introduction to Economics 2012 Summer Session (May 7 to August 15) Instructor: Brian Glabb Office: A-808 Loeb Office Hours: By Appointment E-mail: bglabb@rogers.com Objectives: This course provides an introduction to the discipline of economics‚ covering microeconomics and macroeconomics. It focuses on economic principles and concepts as well as on applications. Economic analysis is applied to a variety of contemporary
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3.1 I would like to make the example as China economy in order to analyze how the structure of an economy has changed in the 21st century. To a variety of industries around the world is divided into three categories: primary industry‚ secondary industry and tertiary industry. Primary industry refers to the provision of production industries‚ including forestry‚ farming‚ aquaculture‚ animal husbandry and other natural objects as objects directly in the production sector. The second refers to industrial
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Robert Nutter Watford Grammar School for Girls October 2013 How does quantitative easing affect the exchange rate? Although A level specifications have not changed for some years the introduction of quantitative easing (QE) programmes by central banks such as the Bank of England and the Federal Reserve in the US has meant that A level students have had to become familiar with it as an instrument of monetary policy. With short term interest rates almost at zero and banks still very
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distribution To calculate the covariance and understand its use in finance To compute probabilities from binomial‚ hypergeometric‚ and Poisson distributions How to use the binomial‚ hypergeometric‚ and Poisson distributions to solve business problems Copyright ©2012 Pearson Education‚ Inc. publishing as Prentice Hall Chap 5-2 Definitions Random Variables A random variable represents a possible numerical value from an uncertain event. Discrete random variables produce outcomes that
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Ratio analysis uses a combination of financial or operating data from a company or industry to provide a basis for comparison. Every ratio in the analysis measures a distinctive association that may have an impact on another ration. An auditor use a financial or accounting ratio to evaluate the overall financial condition of a company. Current and prospective stockholders and creditors used ration analysis to gauge viability and future performance of a company. The performance of a company is usually
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Using the data and your own economic knowledge‚ assess the case for financing universities mainly through charging fees to their students. Charging of fees means that payments will be taken from students instead of receiving subsidies from the government. Education is a merit good as it produces positive externalities (i.e. a better educated workforce that can increase productivity of the society) and is under-consumed as a result. Alternatives to charging fees include government funding‚ gifting
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A production possibilities frontier (PPF) is a curve showing the maximum attainable combinations of two products that may be produced with available resources and current technology. At which point is the country’s future growth rate likely to be the highest? Briefly explain why. Point W (top) because it is where the most resources are used to produce capital goods. What happens if a country produces a combination of goods that efficiently uses all of the resources available in the economy? The
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a Firewall 2. The ________ tool provides a central access point for all of the network controls and connections on a computer running Windows 7. Network and Sharing Center 3. A device that connects one network to another is called a Router 4. The most common method for illustrating the operations of a network stack is the ________ ‚ which consists of ________ layers. Open Systems Interconnection (OSI) Reference model and 7 layers 5. Protocols that do not guarantee deliver of their data
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Performance evidence record Unit 213……………………………..…………………………………………………………………….. Candidate name: Christopher storey ………………………………………………………………………….. Use this form to record details of activities (tick as appropriate) observed by your assessor seen by expert witness seen by witness self reflective account Knowledge NB Your assessor may wish to ask you some questions relating to this activity. There is a separate sheet for recording these. The person who observed/witnessed your activity must sign
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