UNIVERSITY OF TORONTO Joseph L. Rotman School of Management RSM332 PROBLEM SET #2 SOLUTIONS 1. (a) Expected returns are: E[RA ] = 0.3 × 0.07 + 0.4 × 0.06 + 0.3 × (−0.08) = 0.021 = 2.1%‚ E[RB ] = 0.3 × 0.14 + 0.4 × (−0.04) + 0.3 × 0.08 = 0.05 = 5%. Variances are: 2 σA = 0.3 × (0.07)2 + 0.4 × (0.06)2 + 0.3 × (0.08)2 − (0.021)2 = 0.004389‚ 2 σB = 0.3 × (0.14)2 + 0.4 × (0.04)2 + 0.3 × (0.08)2 − (0.05)2 = 0.00594. Standard deviations are: √ 0.004389 = 6.625%‚ σA = √ 0.00594 =
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INSTRUCTORS MANUAL: MULTINATIONAL FINANCIAL MANAGEMENT‚ 9TH ED. SUGGESTED ANSWERS TO CHAPTER 1 QUESTIONS 1.a. What are the various categories of multinational firms? ANSWER. Raw materials seekers‚ market seekers‚ and cost minimizers. b. What is the motivation for international expansion of firms within each category? ANSWER. The raw materials seekers go abroad to exploit the raw materials that can be found there. It just happens that nature didn’t place all natural resources domestically. Market
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This paper discusses the issue of Anti-Dumping (AD) proliferation. AD is used more frequently by many countries and against more products than ever in the history. I reviewed AD filing patterns with an emphasis on the scope of countries and industries seeking protection. Recent trends suggest that the widespread acceptance of AD protection makes the prospect for AD reform increasingly unlikely. AD is no longer being used solely by high-income developed countries‚ it is increasingly being used by
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Running head: COUNSELING AFRICAN-AMERICANS Counseling African-Americans: Issues/Problems/Solutions Introduction Although African-Americans families have come a long way when it comes to professional counseling‚ the many issues that the families face when seeking professional assistance are more culturally based. Culture can be defined as the attitudes‚ habits‚ norms‚ beliefs‚ customs‚ rituals‚ styles‚ and artifacts that express a group’s adaptation to its environment
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estimation method balances marginal costs and marginal benefits. ■ Simple linear relations are useful for demand estimation. ■ Using Simple Linear Demand Curves ■ Straight-line relations give useful approximations. Identification Problem ■ Changing Nature of Demand Relations ■ Demand relations are dynamic. ■ Interplay of Supply and Demand ■ Economic conditions affect demand and supply. ■ Shifts in Demand and Supply ■ Curve shifts can be
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Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS Problem Solution: Global Communications Jesse Neubert University of Phoenix 10/30/2007 Problem Solution: Global Communications Gap Analysis: Global Communications Years ago Global Communications was at the forefront of the telecommunication industry. Profits and market share continued to rise as the demand for traditional land line phone services grew. Now demand for such traditional services has decreased dramatically. Telecommunication
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Have you ever felt that some provinces cause major problems to Canada. Well I can tell you that Quebec definitely is. First Quebec is taking a lot of money from the Canadian Government. Secondly people who live in Quebec think that their French culture is being assimilated. Quebec is causing problems that will take time to fix money to fix. Quebec is using far more than what they are earning and we need to deal with it. On the Department of Finance Canada page is says that in 2015-2016 all provinces
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The Government found it difficult to handle the situation or they are not aware of it because is considered as the institutions problem that many to those in different areas. Many societies know the true situation they perceive. All though this is not an excuse for failure to intervene‚ it is necessary to armed with relevant data and information that will validate the problem that people are facing‚ convince policy 1 makers‚ service providers‚ community leaders‚ government and other stakeholders
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limited on the earth. With the rapid increase of population and fast development of industries‚ water is more needed than before. At the same time‚ a large amount of water has been polluted and wasted every day. Some big cities in China are facing the problem of water shortage already. There‚ water supply is controlled and industry has been restrained. China says water supplies exploited by 2030 written by Chris Bukley reports: China will have exploited all available water supplies to the limit by 2030
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Plaza Shopping Center and opened a new business‚ Weisner’s Ice Cream Shop. Business has been good but the Weisners frequently run out of cash. This has necessitated late payment on certain ice cream orders‚ which in turn is beginning to cause a problem with suppliers. The Weisners plan to borrow from a bank to have cash ready as needed‚ but first they must forecast how much cash will be needed. Therefore‚ they have decided to prepare a cash budget for June‚ July‚ and August to determine their
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