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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Problem Set 1 Complete all questions listed below. Clearly label your answers. 1. The receipts and year of release of the five movies with the largest nominal box office revenues‚ along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release‚ convert the receipts for each to real dollars for the year 2010 (2010 CPI 230.1). Put the movies in order from largest to smallest real box office receipts and show
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Problem Set 1 Problem 1 Which project should the firm select? Why? Project B: Managers should try to maximize their stock’s intrinsic value while also bringing in revenue. The P/E ratio shows the dollar amount investors will pay for $1 of current earnings. Problem 2 If most investors expect the same cash flows from Companies A and B but are more confident that A’s cash flows will be closer to their expected value‚ which company should have the higher stock price? Explain. The primary
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ACA Code of Ethics As approved by the ACA Governing Council 2005 AMERICAN COUNSELING ASSOCIATION www.counseling.org Mission The mission of the American Counseling Association is to enhance the quality of life in society by promoting the development of professional counselors‚ advancing the counseling profession‚ and using the profession and practice of counseling to promote respect for human dignity and diversity. © 2005 by the American Counseling Association. All rights reserved
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Other information: Setup costs vary with the number of batches processed in each department. The budgeted number of batches for each product line in each department is as follows: Trophies Plaques Forming department 40 116 Assembly department 43 103 Supervision costs vary with direct labor costs in each department. 1. Calculate the budgeted cost of trophies and plaques based on a single plant-wide overhead rate‚ if total overhead is allocated based
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“Moral Code” Imagine watching evening news Easter weekend and headlining story of the night is a senseless murder of an entire family. Our normal reaction would be filled with distain and disgust. Leaving unanswered questions like “why” or “how could someone do that?” What drives someone to kill other people? Where is their Moral Code? Most stories like this will give you the killers interpretation of why their moral code went astray and usually gain your empathy‚ even though you don’t agree
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Shannon Whalen September 11‚ 2010 Course 213 Section 2W2 Section 1: Nursing Code of Ethics Provision 1. The nurse‚ in all professional relationships‚ practices with compassion and respect for the inherent dignity‚ worth‚ and uniqueness of every individual‚ unrestricted by considerations of social or economic status‚ personal attributes‚ or the nature of health problems. Provision 2. The nurse’s primary commitment is to the patient‚ whether an individual‚ family‚ group‚ or community. Provision
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L.S. 4523 / 5523 Handout 9 Spring‚ 2013 1. What is a material breach of contract? There are three types of material breach. Anticipatory repudiation: A repudiation of contract obligations before they become due. Must be unequivocal (clear statements of a parties refusal to preform when performance is due.) No assurance (demanded writing exceeds 30 days) = repudiation. 1.) Waffling Seller: A seller who equivocates when asked if he’s going to deliver the goods as promised. 2.) Cash
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1. Use the data given to calculate annual returns for Goodman‚ Landry‚ and the Market Index‚ and then calculate average annual returns for the two stocks and the index. (Hint: Remember‚ returns are calculated by subtracting the beginning price from the ending price to get the capital gain or loss‚ adding the dividend to the capital gain or loss‚ and then dividing the result by the beginning price. Assume that dividends are already included in the index. Also‚ you cannot calculate the rate of return
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medieval principles governing knighthood and knightly conduct‚ if you were a knight; you were expected to follow these rules. But not all knights in the seventeenth century followed these rules honestly or courageously. Some knights dishonored the code‚ putting their pride above the people they were supposed to serve. If there were dishonest knights in the contemporary times‚ chivalry in the modern world is indefinitely dead. Generations of dishonesty of corrupted knights from the contemporary times
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