This is for AT&T: What is the organizations level of
technical complexity? Does the organization use a small-batch, mass
production, or continuous-process technology?
Consider the Phillips curve: pi(t) = Epi(t) - 0.5(u(t) - 8),
where pi(t) is inflation rate at t, Epi(t) is expected inflation
for t, and u(t) is unemployment at t.
Now suppose the public has adaptive expectation: Epi(t) =
pi(t-1), Epi(t+1) = pi(t), and so on. Inflation at time t-1 is
pi(t-1) = 3%; the rate of unemployment u(t) at time t is at the
natural level. The authorities decide to bring the unemployment
rate to 6% from time t+1...
How does the market form of economic organization known to us as
capitalism account for a changing landscape? In other words, what
mechanisms are at work in the market system which accounts for the
change? How do they function? How does the Socialist Commonwealth
account for the change?
does using an influencer to market an organization make sense? why
or why not? is using popular youtube personalities to markey
products here to stay or is it a fad?
The T-bill rate is 4 percent and the expected return on the
market is 12 percent.
a. What projects have a higher expected return than the firm’s
12.5 percent cost of capital?
b. Which projects should be accepted?
Project
Beta
IRR
W
0.80
10.2%
X
0.90
11.4%
Y
1.10
12.6%
Z
1.35
15.1%
The formula for the amount A in an investment account with a nominal interest rate r at any time t is given by A(t) = a(e)rt, where a is the amount of principal initially deposited into an account that compounds continuously. Prove that the percentage of interest earned to principal at any time t can be calculated with the formula I(t) = ert − 1.
Where does the supply of dollars in the foreign-currency
exchange market come from? a. from
Canadian national saving b. from
Canadian net capital outflow c. from
domestic investment d. from
foreign demand for Canadian goods
MyBook's stock has a beta of -.22. The T-bill (annual) rate is
.75%. If the market is expected to go up by 11.5% this year, how
much the MyBook stock is expected to move according to CAPM.
a 4.97%
b. 3.12%
c. 6.62%
d. -1.62%
Here are data on two companies. The T-bill rate is 4% and the
market risk premium is 6%.
Company
$1 Discount Store
Everything $5
Forecasted Return
12%
11%
Standard Deviation of Returns
8%
10%
Beta
1.5
1.0
1) What would be the fair return for each company, according to the
capital asset pricing model (CAPM)?
2) Explain how the CAPM is used to perform this calculation and
how a financial advisor would utilize this information to advise a
client.
3)...
Here are data on two companies. The T-bill rate is 4% and the
market risk premium is 6%.
Company
$1
Discount Store
Everything $5
Forecast return
12%
11%
Standard deviation of
returns
8%
10%
Beta
1.5
1.0
Based on the fair return and according to the capital asset pricing
model (CAPM), is each firm properly priced?
Company
Expected Return
$1 Discount Store
(Click to
select)Properly pricedUnderpricedOverpriced %
Everything $5
(Click to select)UnderpricedProperly pricedOverpriced %