Problem Set 4 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? a. Any financial asset that can be easily changed into physical money is included in the M1 money supply. b. Because checkable deposits are easily changed into physical money‚ they are included in M1; however‚ savings accounts and Treasury bills cannot be‚ due to the fact that
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Problem Set 4 Complete all questions listed below. Clearly label your answers. 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? If the financial asset can be turned into real money fast. Intrest earning checkable deposits are included because they can be converted quickly into paper money. Intrest earning savings accounts and treasury
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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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OPIM Assignment 4 1. Cu = 24-11 = $13 Co = 11-7 = $4 Critical ratio = 13/(13+4) = 0.7647 μ = 30‚000 σ = 10‚000 Using normal distribution function (=norminv(0.7647‚30000‚10000))‚ the optimum order quantity is 37‚216 jerseys to maximize profit. 2. Quantity = 32‚000 First‚ we normalize the order quantity to find the z-statistic z=Q-μσ=32‚000-25‚00010‚000=0.7 We then look up the standard normal loss function. The expected lost sale is given by. Lz=0.1429 Therefore‚ the expected lost
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Week 4 Homework Solutions: Problem Set 4 1. Determining Profit or Loss from an Investment. Three years ago‚ you purchased 150 shares of IBM stock for $88 a share. Today‚ you sold your IBM stock for $103 a share. For this problem‚ ignore commissions that would be charged to buy and sell your IBM shares. a. What is the amount of profit you earned on each share of IBM stock? The profit on each share of IBM stock was $15. $103 priced when each share was sold‚ $88 priced when each
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Kehinde wiley is one artist I admire so much and I’ve never had the opportunity to really go into details who exactly he is other than what’s on the surface. I choose this article from GQ.com because it explains in detail the creative process of one of the most celebrated painters in the world. Wiley is not your regular painter‚ he’s in a world of his own and his uniqueness sets him apart from his contemporaries. He is well known for portraits of young African-American men staged in heroic poses
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Ela Gavrilas Performance Plus Steve Cook introduced with the approval of his top management a full service program called Performance Plus and organized a cross functional Performance Team by pulling members of his existent management team in order to achieve in the next 3 years their division goal of 60% of its revenue from products generated within the last five years. First step that Cook should’ve had to think about when creating cross functional team was teamwork‚ in order to improve
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I EDUC 8116-2 Leadership in a Global Society Module 3 Assignment: Personality Plus Student ID Program: PhD in Education Specialization: Curriculum‚ Instruction‚ and Assessment Professor: April 14‚ 2013 Introduction This paper explores frameworks for assessing trait‚ skills
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Week 3 Study Guide: Research and Sampling Design Readings and Key Terms Ch. 6 of Statistics for Business and Economics Ch. 7 of Statistics for Business and Economics Ch. 10 of Business Research Methods Ch. 11 of Business Research Methods Ch. 12 of Business Research Methods Content Overview Determine appropriate measurement scales for a given research design. Mapping rules (four assumptions) Numbers are used to classify‚ group‚ or sort responses. No order exists. Numbers are
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covered all the districts of the country and by 1995 the number of reported cases of polio declined to 3‚265. This was mainly possible because of the wide scale advertising; the measures taken to eradicate polio from the country were vast. The polio plus campaign aimed at covering every individual in the country. It aspires to reach every child in remote communities through improvised social mobilization plans. The idea of this campaign was to immunize every child‚ leaving no chance for a polio occurrence
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