The following three true/false questions pertain to bond risk:

Question 1/4 - Bond Risk: True or False: Higher risk bonds will receive a lower rating by bond-rating agencies.

2. True or False: Investors will expect higher returns on higher-risk bonds than on lower-risk bonds.

3. True or False: All else equal, the longer a bond’s term, the higher the bond’s risk.

4. True or False: Generally, loans investors make to the United States government (through Treasury Bills and Treasury Notes) are among the highest-risk bonds existing in the market.

1. Consider two Thai firms listed on the Bangkok stock exchange:
   • Thai A is a mining company that exports a large part of its minerals production. Much larger competitors can be found in Latin and North America. The market price of its production is largely determined in dollars on the world market.
   • Thai B imports various engine parts from Europe and the United States. The demand for its product is highly price elastic. A significant rise in baht prices lowers the demand. What will happen to the earnings and stock prices of the two companies if there is a sudden and large devaluation of the Thai baht against major currencies?

The sharing economy is a fast-growing phenomenon. People increasingly share their home, car, clothing or tools on Internet platforms such as Uber, WeWork, and Airbnb. Statistics shows that there were 44.8 million adults using the increasingly popular sharing economy services in the United States in 2016. This figure was forecast to increase to 86.5 million by 2021. Choose a sharing economy based company, briefly describe the business model of the company, show the major costs of the company (please be specific and thorough), and discuss the major challenges faced by the company to reach break-even (please limit your answer to 600 words or less)

Do you think teens should be treated like adults when they commit serious crimes? Why or why not?

What is the connection between drugs and crime? Are you in favor of decriminalization of any federally controlled substances? Why or why not?

What is the difference between legalization and decriminalization of drugs?

What are some of the causes of terrorism? List at least 3.

List 3 efforts are being made to combat terrorism in the United States.

What is the relationship between crime and technological advancement?

What modifications to existing laws may need to occur to address crimes related to advancing technologies?

M/PF Research, Inc. lists the average monthly apartment rent in some of the most expensive apartment rental locations in the United States. According to their report, the average cost of renting an apartment in Minneapolis is $951. Suppose that the standard deviation of the cost of renting an apartment in Minneapolis is $96 and that apartment rents in Minneapolis are normally distributed. If a Minneapolis apartment is randomly selected, what is the probability that the price is:

(Round the values of z to 2 decimal places. Round answers to 4 decimal places.)

(a) $1,010 or more?

(b) Between $880 and $1,120?

(c) Between $825 and $935?

(d) Less than $730?

Confidence in banks: A poll conducted in 2012 asked a random sample of 1342 adults in the United States how much confidence they had in banks and other financial institutions. A total of 143 adults said that they had a great deal of confidence. An economist claims that less than14% of U.S. adults have a great deal of confidence in banks. Can you conclude that the economist's claim is true? Use both =α0.10 and =α0.01 levels of significance and the P-value method with the TI-84 Plus calculator.

(b) Compute the P-value. Round the answer to at least four decimal places.

P-value= ___

Suppose that Randy is an analyst for the bicyling industry and wants to estimate the asking price of used entry-level road bikes advertised online in the southeastern part of the United States. He obtains a random sample of n = 14 online advertisements of entry-level road bikes. He determines that the mean price for these 14 bikes is ¯¯¯ x = $ 714.19 and that the sample standard deviation is s = $ 184.56 . He uses this information to construct a 99% confidence interval for μ , the mean price of a used road bike. What is the lower limit of this confidence interval? Please give your answer to the nearest cent.

The sharing economy is a fast-growing phenomenon. People increasingly share their

home, car, clothing or tools on Internet platforms such as Uber, WeWork, and Airbnb. Statistics

shows that there were 44.8 million adults using the increasingly popular sharing economy

services in the United States in 2016. This figure was forecast to increase to 86.5 million by

2021.

Required:

Choose a sharing economy based company, briefly describe the business model of the

company, show the major costs of the company (please be specific and thorough), and discuss

the major challenges faced by the company to reach break-even (please limit your answer to

600 words or less)

M/PF Research, Inc. lists the average monthly apartment rent in some of the most expensive apartment rental locations in the United States. According to their report, the average cost of renting an apartment in Minneapolis is $951. Suppose that the standard deviation of the cost of renting an apartment in Minneapolis is $96 and that apartment rents in Minneapolis are normally distributed. If a Minneapolis apartment is randomly selected, what is the probability that the price is: (Round the values of z to 2 decimal places. Round answers to 4 decimal places.) (a) $980 or more? (b) Between $930 and $1,110? (c) Between $840 and $930? (d) Less than $720?