In a closed economy, given the following:
The consumption function C = 0.8(1 – 0.25) Y + 12
The average tax rate t = 25%
The level of private investment I = 26
The level of government spending G = 14
Where Y is the national income.
Given the short run production function, Q = 3L2 – 0.1L3
( a) Write down the equations for,
(i) the marginal product of labor, MPL
(ii) the average product of labor, APL.
(b) Find the value of Q for which the MPL and APL are maximized.
(c) Show that the MPL= APL when the APL is at a maximum
In: Economics
Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 40% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 25% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.
Calculate each stock's coefficient of variation. Do not round intermediate calculations. Round your answers to two decimal places.
CVx =
CVy =
Calculate each stock's required rate of return. Round your answers to one decimal place.
rx = %
ry = %
-Select-Stock XStock YItem 6
rp = %
In: Finance
An average of 0.8 accident occur per day in a particular large city. Let x be the number of accidents per day. What is the probability, rounded to the nearest 4 decimal places, that no accident will occur in this city on a given day?
What is the probability, rounded to the nearest 4 decimal places, that one or two accidents will occur in this city on a given day?
A really bad carton of 18 eggs contains 7 spoiled eggs. An unsuspecting chef picks 4 eggs at random for this "Mega-Omelet Surprise". Let x be the number of unspoiled eggs in a sample of 4 eggs. Find the probability that the number of unspoiled eggs among the 4 selected is at least 1. Round your answer to the nearest 4 decimal places.
What are all the possible values that x can assume.
In: Statistics and Probability
Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 30% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.
A. Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.
CVx =
CVy =
B. Which of the following stock is riskier for a diversified investor?
a. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is less risky. Stock Y has the higher beta so it is less risky than Stock X.
b. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the higher beta is more risky. Stock Y has the higher beta so it is more risky than Stock X.
c. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the higher standard deviation of expected returns is more risky. Stock X has the higher standard deviation so it is more risky than Stock Y.
d. For diversified investors the relevant risk is measured by beta. Therefore, the stock with the lower beta is more risky. Stock X has the lower beta so it is more risky than Stock Y.
e. For diversified investors the relevant risk is measured by standard deviation of expected returns. Therefore, the stock with the lower standard deviation of expected returns is more risky. Stock Y has the lower standard deviation so it is more risky than Stock X.
C. Calculate each stock's required rate of return. Round your answers to two decimal places.
rx =
ry =
D. On the basis of the two stocks' expected and required
returns, which stock would be more attractive to a diversified
investor?
E. Calculate the required return of a portfolio that has $3,500 invested in Stock X and $9,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.
rp =
F.If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return
In: Finance
Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 40% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.
CVx =
CVy =
Which stock is riskier for a diversified investor?
Calculate each stock's required rate of return. Round your answers to two decimal places.
rx = %
ry = %
On the basis of the two stocks' expected and required returns, which stock would be more attractive to a diversified investor?
_________Stock XStock Y
Calculate the required return of a portfolio that has $4,000 invested in Stock X and $3,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.
rp = %
If the market risk premium increased to 6%, which of the two stocks would have the larger increase in its required return?
_________Stock XStock Y
In: Finance
Beta of Assets A, B, C, and D are 1.2, 1.8, 2.4, and 0.8 respectively. You form a portfolio with equal weights on A, B, C, and D. The risk-free rate is 2%, and the expected return of the market portfolio is 10%. Find out the expected return of your portfolio according to the CAPM.
Group of answer choices
12%
12.4%
18.2%
17.5%
14.4.%
In: Finance
Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 40% standard deviation of expected returns. Stock Y has a 13.0% expected return, a beta coefficient of 1.3, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%.
Calculate each stock's coefficient of variation. Round your answers to two decimal places. Do not round intermediate calculations.
CVx =
CVy =
Which stock is riskier for a diversified investor?
Calculate each stock's required rate of return. Round your answers to two decimal places.
rx = %
ry = %
Calculate the required return of a portfolio that has $5,000 invested in Stock X and $10,000 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places.
rp = %In: Finance
In: Accounting
Two parallel connected loads take a total of 2.4 kW, with a 0.8
line delay at 120 Vrms and 60 Hz. One load absorbs 1.5 kW with a fp
delay of 0.707.
Determine:
a) The fp of the second charge
b) The parallel element required to correct the fp of the two loads
and convert it to a delay of 0.9
In: Electrical Engineering
question should be done on Matlab
4) Find the derivative of sin(2x) at x = 0.8 rad and find the value of h where the error is minimum as compared to the true value i.e. actual value or accurate value. a) Use for loop b) Use element by element operation
In: Computer Science