Long essay question: Question 2) Explain how economists calculate the rate of return that individuals get...

Long essay question:

Question 2) Explain how economists calculate the rate of return that individuals get from investments in their human capital and basic empirical results of these calculations. A perfect answer will explain the types of costs/benefits included in these calculations, how the actual calculation is done (You are not expected to do this calculation) and empirical results. Use only material provided in this course to answer this question. (18 pts)

Solutions

Expert Solution

Rahul Sunny answered 3 months ago

Next > < Previous

Related Solutions

3 . Explain how we calculate the rate of return for a market-value weighted index. You...

3 . Explain how we calculate the rate of return for a market-value weighted index. You can show the formula and explain it. 4. Explain how we calculate the rate of return for an equally-weighted index. You can show the formula and explain it.

I will rate Approximately how long will it take to double your money if you get...

I will rate Approximately how long will it take to double your money if you get a 5.5%, 7.5%, or 9.5% annual return on your investment? Verify the approximate doubling period with the time value of money equation. Fill in the missing annuity in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Payment Present Value 5 9% 0 $25,000.00 20 8% $25,000.00 0 30 7% 0 $200,000.00 10 4%...

1.how to Calculate the expected rate of return and volatility for a portfolio of investments and...

1.how to Calculate the expected rate of return and volatility for a portfolio of investments and describe how diversification affects the returns to a portfolio of investments ? 2.Understand the concept of systematic risk for an individual investment and calculate portfolio systematic risk (beta). 3.Estimate an investor’s required rate of return using the Capital Asset Pricing Model.

A. Short Essay Questions Money and Banking 1)How do economists define money? Explain. What are the...

A. Short Essay Questions Money and Banking 1)How do economists define money? Explain. What are the three functions of money? Explain each. Explain the evolution of money. 2)What are the principal uses of funds (assets) and sources of funds (liabilities) of banks? Explain. What are the two potential problems (flaws) in our banking system? Explain each. 3)What is a bank run? Explain. How can a bank run turn into a financial panic? Explain. How can the Federal Reserve prevent banking...

Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and...

Calculate annual arithmetic rate of return and annual geometric rate of return of stock A and B. Consider the data in table below, which show the movements in price for two stocks over two successive holding periods. Both stocks have a beginning price of $10. Stock A rises to $40 in period 1 and then declines to $30 in period 2. Stock B falls to $8 in period 1 and then rises to $25 in period 2.

1. Some economists blame the "labor-market rigidities" when they explain European unemployment rate. NEED short essay...

1. Some economists blame the "labor-market rigidities" when they explain European unemployment rate. NEED short essay that explains (a) the meaning of "generous system of unemployment insurance" and "high degree of employment protection" and (b) how they affect wage-setting relation [W/P=F (u, z)], price-setting relation [W/P=1/(1+m)] and therefore unemployment rate (u)?

Question