210 :’=! $1‚000 today. (b) i = 6.6%. Years required to double = ~ :’=! 10.9. Times doubled = ~ times. $1 invested in 1776 is worth 220 :’=! 000‚ 000 today. $1‚ 2. (The 72 rule) Using (1 + r)n = 2 gives nIn (1 +r) In2 = 0.69. We have nr :’=! 0.69 and thus n :’=! ~ = 20 = In2. Using In (1 + r) :’=! and r :’=! PI. Using instead In(1 + r) :’=! r- !r2 = r(1 -!r) we have nIn(1 + r) = In2 or equivalently nr :’=! ~. For r :’=! 0.08‚ we have (1 -r /2)-1 :’=! 1.042. Therefore‚ n:’=! !(0.069)(1.042) r
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1. Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 12% per year. b. Risky asset with expected return 30% per year and standard deviation of 40%. If you construct a portfolio with a standard deviation of 30%‚ what is its expected rate of return? Ans: P = 30 = yy y = 0.75 E(rP) = 12 + 0.75(30 12) = 25.5% 2. Suppose that there are many stocks in the security market and that the characteristics of Stocks
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1.0 Introduction Strategic Management permits the organization to achieve competitive advantage through the matching of resources and capabilities to the needs of the external environment‚ analysis of the organization‚ formulation and implementation of the strategy. This report explains the three stages of strategic management; strategic analysis‚ strategy formulation and strategy implementation of French Connection‚ UK. The analysis of French Connection‚ UK in this report includes two core areas
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Mathematical Programming: An Overview 1 Management science is characterized by a scientific approach to managerial decision making. It attempts to apply mathematical methods and the capabilities of modern computers to the difficult and unstructured problems confronting modern managers. It is a young and novel discipline. Although its roots can be traced back to problems posed by early civilizations‚ it was not until World War II that it became identified as a respectable and well defined body of
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Programming Programming Logic and Design‚ 6th Edition Chapter 3 Exercises 1. In Figure 3-10 the process of buying and planting flowers in the spring was shown using the same structures as the generic example in Figure 3-9. Describe some other process with which you are familiar using exactly the same logic. Answer: Student answers will vary widely. They should come up with processes that fit the generic logic shown in Figure 3-9. Some examples could include: making a dentist appointment
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Integer Programming 9 The linear-programming models that have been discussed thus far all have been continuous‚ in the sense that decision variables are allowed to be fractional. Often this is a realistic assumption. For instance‚ we might 3 easily produce 102 4 gallons of a divisible good such as wine. It also might be reasonable to accept a solution 1 giving an hourly production of automobiles at 58 2 if the model were based upon average hourly production‚ and the production had the interpretation
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International Portfolio Management Fall 2010 PROBLEM SET 1 Investment Policy and Bond Portfolio management Due date: Friday‚ September 17‚ 5:00 pm. No late problem sets will be accepted. 1. Assume that at retirement you have accumulated $825‚000 in a variable annuity contract. The assumed investment return is 5.5% and your life expectancy is 18 years. What is the hypothetical constant benefit payment? PV = -825‚000‚ i = 5.5‚ n = 18‚ PMT = 73‚358.93. 2. You manage a
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Case study Portfolio analysis and planning in a retail group Bear is a large department store in downtown St Gallen which has belonged to the family of the same name for three generations. Offering a full range of goods‚ it has been able to preserve its domonance in the region. Figure 1 presents the range of goods sold and estimates for current turnover. |Product goup |Turnover in mil. CHF
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Project Report #1 (Advanced Operation Research) Title : Production Planning Optimization Using Goal Programming Method I. Introduction Today many companies that produce herbs because in the future opportunities for the herbal industry is still wide open and the public mind back to nature and go green‚ so consumer more like the various products especially natural herbal medicine. Therefore‚ in order to survive in existing market competition‚ PT. NM are required to
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on‚ which are about 10‚000 products. What’s more‚ there are above 12‚000 items in its product catalogues and the amount of this kind of brochures is up to one hundred million among the world a year. Therefore‚ it is necessary to look into IKEA’s strategies and analyse its successes and difficulties. This report will
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