This question relates to Topic 4 and LO’s 1, 2, 3, 5, 6
a. In terms of share investment define what beta (β) represents. [2.5 marks]
b. According to au.finance.yahoo.com, APT has a beta of 1.88. What does this mean? [2.5
marks]
c. In terms of riskiness how would you compare APT’s beta to the market? [2.5 marks]
d. Calculate the expected returns for APT using the Capital Asset Pricing Model (CAPM)
and the following yields. [5 marks]
• The risk free rate (Rf) as measured by the yield on Australian 10 year treasury
bonds is 1.5% p.a.
• The average return on the market for the past 10 years has been 10.5% p.a.
• Use the APT beta (β) of 1.88.
e. i. Using the CAPM data from (d), create an Excel scatter plot graph to plot the Security
Market Line (SML)using the Rf, return on the market and APT. [5 marks]
ii. Based on your CAPM findings, construct a portfolio made up of 40% market and 60%
APT. Calculate the estimated return and beta for this portfolio. [2.5 marks

write a java code to calculate

1+2-3+4-5 …-99+100

1) Define each of the insurance terms on page 211.

2) Which are the 4 four parts of Medicare? Explain each with 2-3 sentences.

3) What is Medicaid? Who is eligible?

4) State the three characteristics to each of the following health care systems: US, UK, and Canada.

1) Define each of the insurance terms

2) Which are the 4 four parts of Medicare? Explain each with 2-3 sentences.

3) What is Medicaid? Who is eligible?

4) State the three characteristics to each of the following health care systems: US, UK, and Canada.

1. Identify the 4 primary legal characteristics of a corporation.

2. Explain the difference between a tax deduction and a tax credit. Generally speaking, which is more advantageous and why.

3. What is the definition of a permanent establishment? What is the significance of a permanent establishment when used in connection with bilateral income tax treaties?

4. What is nexus? What determines nexus in connection with the state's ability to impose an income tax on a non-resident corporation?

5. What is the definition of a "pass-through entity" and name one advantage of setting up a business entity as a "passthrough"?

6. What activity is the U.S. tax law trying to encourage by imposing a lower tax on foreign-derived intangible income? What is the tax rate on that income?

Solve for x

x^4 + 2x^3 + 2x^2 + 3x + 1 = 0

1. Assume the growth rate of real GDP falls from 4% to 2%. This means that

a. the economy is in a recession.

b. the level of production has fallen.

c. the price level is falling.

d. the level of production is growing more slowly.

2. Consider the following information about an economy:

Consumption                                      $68,000

Personal saving                                  $15,000

Taxes                                                  $30,000

Wages and salaries                            $72,000

Interest payments                               $12,000

Investment                                          $18,000

Government spending                        $20,000

Government transfer payments          $6,000

Imports                                               $10,000

Exports                                               $8,000

Rental payments                                $5,000

Profit                                                   $15,000

According to the information provided, what is the value of GDP. Enter a whole number with no dollar sign

3. There are 206 unemployed people, 2060 employed people, and the adult population is 3073.

What is the labor force participation rate? Enter a number (measured in percentage terms) rounded to two decimal places. Do not enter a % sign.

4. In 2001 the value of RGDP was $12,670.106 billion, the population was 285.324 million, and the number of people employed was 137,071 measured in thousands. The value of real GDP per capita was $_____ and employment as a percentage of population was ______%. Round to the nearest whole number.

JUST DO QUESTION 2 and 3, not 1. The answer to one is 4% I believe.

1. Ann gets a fully amortizing 30-year fixed rate mortgage with quarterly payments for $1,000,000. The interest rate is 4%, compounded quarterly. She prepays the mortgage in 1 quarter (i.e. she makes the 1^st payment and immediately prepays the remaining balance). What is Ann’s APR?

   Notes: a quarter equals 3 months, one year consists of 4 quarters, APR is annual.

2. Modify question 1: At the moment when Ann signs the mortgage, she must pay an origination fee that equals 2 points. Everything else stays the same, and she still prepays the mortgage in 1 quarter. What is Ann’s APR?

3. Modify question 2: There is still an origination fee of 2 points, but now Ann decides to keep the mortgage for the whole term, i.e. she no longer plans to prepay it. What is Ann’s APR?

Forecasts the scores you think you will achieve for Weeks, 1, 2, 3, and 4 and send them to your professor.

During Week 5, using your actual scores for Weeks 1, 2, 3, and 4 and your forecast values, calculate a regression equation, r, and R² for this data.

Week 1-4

Actual score Forecast score

25 25

22 25

35 35

35 35

1. What data did you use in your regression equation? Which is the independent and dependent variable?
2. What is the regression equation, r, and R2 for your data?
3. Statistically, what does r and R2 tell you?
4. Based on your empirical evidence, how who well did you forecast your results? Justify your response.