Specific/Idiosyncratic Risk. Systematic/Market Risk. Correct 5.00 Correct. You have a good intuition for different types of risks. Total 5.00 / 5.00 Question Explanation A fundamental question of different types of risks. 5 points) Suppose there are three securities (A‚B‚ and C) to choose from‚ and next year the economy will be in an expansion‚ normal‚ or recession state with probabilities 0.30‚ 0.35‚ and 0.35‚ respectively. The returns (%) on the securitiies in these states are as
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Homework 3 Due at 8:30 PM on Thursday October 18 on Elearning 1. Suppose that a firm’s production function is given by Q =F(K‚L) = 3K+2L . What is the marginal rate of technical substitution between capital and labor when K=3 and L=4? (The rate at which the firm can substitute between
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and total debt of $410 billion. Over this period‚ what was the change in GE’s • a. market capitalization? • b. market-to-book ratio? • c. enterprise value? 11. Suppose that in 2013‚ Global launches an aggressive marketing campaign that boosts sales by 15%. However‚ their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income‚ interest expenses are unchanged‚ and taxes are the same percentage of pretax income as in 2012. • a. What is Global’s EBIT in 2013? • b
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Discounted Cash Flow Valuation Chapter 6 D.Chotee FTX2020F 2013 Chapter objectives Be able to compute the future and present value of multiple cash flows Understand what an annuity is and how to calculate its present and future value How to calculate the present value of a perpetuity Appreciate the effects of compounding on interest rate quotations Understand how loans are amortized or paid off D.Chotee FTX2020F 2013 Readings Chapter 6: 6.1‚ 6.2‚ 6.3‚ 6.4 D.Chotee FTX2020F
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needs explanation because it determines the shape of the PP curve. If this assumption changes‚ the shape changes. Efficiency in production means productivity i.e. output per unit of an input. Let the input be worker. Suppose an economy produces only two goods X and Y. Suppose a worker is employed in production of X because he is best suited for it. The economy decides to reduce production of X and increase that of Y. The worker is transferred to Y. He is not that efficient in production of Y
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IELTS SPEAKING PART 1: General first topics are in two paths: * Where you live ( your city‚ area where you live‚ street‚ house) * Your studies‚ work‚ job There are 2-5 topics are asked‚ and about 6-15 questions‚ in 4- 5 minutes Longer responses‚ fewer questions Longer answers are preferable than short answers 1. Possible topics Where you live | Collecting things | Cooking | Your studies | Dancing | Weddings | Your job | Learning language | Public transport | Hobbies | Rain | Traveling
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associativity of equivalence simplifies the problems considerably. 3 The Island of Knights and Knaves The island has two types of inhabitants‚ “knights” who always tell the truth‚ and “knaves” who always lie. Suppose A is the proposition “person A is a knight” and suppose A makes a statement S. Then A is true is the same as S is true. That is‚ A≡S . Examples If A says “I am a knight” then what we can infer from the statement is A ≡ A. But since this is always true we get no information
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pair of running shoes‚ even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of A. producer surplus. B. price ceilings. C. full economic prices. D. consumer surplus. 31. Suppose the demand for good X is given by Qdx = 20 - 4Px + 2Py + M. The price of good X is $5‚ the price of good Y is $15‚ and income is $150. Given these prices and income‚ how much of good X will be purchased? A)160 B)180 C) 220 D) None of the above
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cannot observe to ultimately make predictions about something we can observe –consumer demand behaviour. What would have happened if we started with something we can observe? (Choice-based approach.) Consider two consumption bundles‚ x and y. Suppose that both of these bundles are affordable at some prices and income level. If the consumer buys one bundle instead of the other‚ then the bundle bought (chosen) is considered to be revealed preferred (RP) to the other. The presumption is that by actually
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of new home construction because of the glut of unsold homes on the market. Was this price decrease caused by a shift in the supply or demand curve (include a graph)? 5. Use the dangerous formula (MC = P ( 1 + 1/η ) to address the following. Suppose that a manufacturer sells a product through an upscale boutique and‚ with a different brand name‚ through a discount retailer. The elasticity of demand at the boutique is -1.2‚ and at the discount retailer it is -2.6. If the optimal price at the boutique
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