a)            CEMENCO Stock Return

Find the Average Return and Risk (as measured by Standard Deviation) of CEMENCO since 2000.

b) You have a portfolio consisting of 20 percent CEMENCO stock (β = 0.81), 40 percent of Monrovia Breweries (Club Beer) stock ((β = 1.67). How much market risk does the portfolio have? How does this compare with the general market?

c) Data from the last eight decades for S & P 500 index yield the following statistics: average excess return = 7.9%; Standard Deviation = 23.2%.

(i)To the extent that these averages approximated investor expectations for the period, what must have been the average coefficient of risk aversion? Formula: E (r_m) – r_f = Ā ẟ²_m

(II)If the coefficient of risk aversion were actually 3.5, what risk premium would have been consistent with the market’s historical standard deviation?

d) A portfolio’s return is 12%, its standard deviation is 20% and the risk-free rate is 4%. Which of the following would make the greatest increase in the portfolio’s Sharpe ratio?

An increase of 1% in expected return?

A decrease of 1% in the risk-free rate?

A decrease of 1% in its standard deviation?

(2 pts) Accrual basis vs. basis – revenue and expense recognition: Suppose Capaldi Corp. provides travel services to customers and noted the following transactions for May 2018:

For each transaction, determine the amount of revenue or (expense), if any, that is recorded under accrual-basis accounting and under cash-basis accounting for May 2018. I have completed transaction a. for you as an example.

(2 pts) Accrual Based Accounting: Prepaid expenses – Depreciation of Fixed Assets. Moving On, Inc. purchases a new moving truck (e.g. ‘equipment’) for $56,000 on October 1^st, 2017. At the time of its purchase, the truck is expected to be used in operations for 4 years and will have no resale or scrap value at the end of its life. Assume Moving On, Inc. uses straight-line depreciation (i.e. the asset depreciates evenly) over the expected life of the truck.

Record the journal entry for the original purchase of the truck that occurs on October 1^st, 2017.

Record the adjusting entry to recognize Depreciation Expense on December 31, 2017.

What will the ending balance of the Accumulated Depreciation account be on December 31, 2018 (Assume the beginning balance of Accumulated Depreciation on January 1^st, 2017 is $0 and Moving On, Inc. has no other assets that depreciate)?

What will the net book value of the truck be on December 31, 2018?

(2 pts) Accrual Based Accounting: Deferred (unearned) revenues. Suppose that on November 29^th, 2017 a customer pays Ood Sphere, Ltd. $2,000 cash in advance for merchandise which will be delivered to the customer on December 5^th.

Record the journal entry for the original purchase of the merchandise that occurs on November 29^th, 2017.

Record the adjusting entry Ood Sphere, Ltd. should record on December 5^th to recognize sales revenue.

Suppose the cost of the merchandise sold (i.e. COGS) is $1,600. When should Ood Sphere, Ltd. record this expense? Why? Briefly explain your answer.

mong the thirty largest U.S. cities, the mean one-way commute time to work is 25.8 minutes. The longest one-way travel time is in New York City, where the mean time is 38.8 minutes. Assume the distribution of travel times in New York City follows the normal probability distribution and the standard deviation is 7.7 minutes. Use Appendix B.3

. What percent of the New York City commutes are for less than 27 minutes? (Round your intermediate calculations and final answer to 2 decimal places.)

What percent are between 27 and 35 minutes? (Round your intermediate calculations and final answer to 2 decimal places.)

What percent are between 27 and 43 minutes? (Round your intermediate calculations and final answer to 2 decimal places.)

among the thirty largest us cities, the mean one-way commute time to work is 25.8 minutes. the longest one-way travel time is in new york city, where the mean is 37.7 minutes. assume the distribution of travel time in new york city follows the normal probability distribution and the standard deviation is 6.7 minutes.

A. What percent of the New York City commutes are for less than 27 minutes? (Round your intermediate calculations and final answer to 2 decimal places)

B. What percent are between 27 and 33 minutes?  (Round your intermediate calculations and final answer to 2 decimal places)

C. What percent are between 27 and 47 minutes?  (Round your intermediate calculations and final answer to 2 decimal places)

Each of n people chooses whether to contribute a fixed amount toward the provision of a public good. The good is provided if and only if at least k people contribute, where 2 ≤ k < n. If it is not provided, contributions are not refunded. Each person ranks outcomes from best to worst as follows:

(i) any outcome in which the good is provided and she does not contribute,

(ii) any outcome in which the good is provided and she contributes,

(iii) any outcome in which the good is not provided and she does not contribute,

(iv) any outcome in which the good is not provided and she contributes.

Answer the following questions:

a) Formulate this situation as a strategic game

b) Is there an equilibrium in which exactly k people contribute?

c) Is there a Nash equilibrium in which more than k people contribute?

d) Is there a Nash equilibrium in which fewer than k people contribute?

On January 1, 2018, Red Flash Photography had the following balances: Cash, $13,000; Supplies, $8,100; Land, $61,000; Deferred Revenue, $5,100; Common Stock $51,000; and Retained Earnings, $26,000. During 2018, the company had the following transactions:  

The following information is available on December 31, 2018:
  
1. Employees are owed an additional $4,100 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,100 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

RESUBMITTING AS PREVIOUS SUBMISSION BY ANONYMOUS WAS INCORRECT

The accompanying table contains the service ratings of 14 different Internet and TV providers. Level of significance is .10. Complete parts​ (a) through​ (d) below

Determine the T Test

Determine the P value

Construct and interpret a 90​% confidence interval estimate of the difference in the mean service rating between TV and Internet services

How would you satisfy both retailers and consumers when using revenue management tactics, since the same two customers might actually pay different prices for the same product/service as discussed.