The volatility of the market portfolio is 10%, the expected return on the market is 12%, and the risk-free rate of interest is 4%.

1) Calculate the beta for each stock.

2) Calculate the beta for the portfolio of the three stocks.

3) Calculate the beta for the market.

4) Calculate the expected return for each stock.

5) Calculate the expected return for the portfolio of the three stocks.

If the share of GDP used for capital goods is 0.12, the growth rate of productivity is 0.01, the growth rate of population is 0.03, the depreciation rate is 0.06, the initial capital/output ratio is 2.85, and the elasticity of GDP with respect to capital is 0.3, then what is the growth rate of the GDP per capita? Use three decimal places.

A steel ball is dropped from a diving platform (with an initial velocity of zero). Using the approximate value of g = 10 m/s2 (a) Through what distance does the ball fall in the first 0.3 seconds of its flight? (b) How far does it fall in the first 4.9 seconds of its flight?

1. INTC current stock price is 23. You sold a 22 put and bought a 21 put. The premium on the 22 put is 0.6, and the premium on the 21 put is 0.3. Analyze your gain or loss if on the expiration day the stock price is larger than 22, between 21 and 22, less than 2

a) Increasing the flow rate of the mobile phase would

1. increase longitudinal diffusion.

2. increase broadening due to mass transfer.

3. increase broadening due to multiple paths.

b) How many 50 mL extractions will it take to remove 95% of Compound A that is in 20 mL of water, if K = 0.3?

INTC current stock price is 23. You sold a 22 put and bought a 21 put. The premium on the 22

put is 0.6, and the premium on the 21 put is 0.3. Analyze your gain or loss if on the expiration

day the stock price is larger than 22, between 21 and 22, less than 21.

A coin is moving in a horizontal circle in a cone. The cone has height 70 cm and radius 20 cm. The coin is at a height halfway up. The coefficient of static friction is 0.3. The mass of the coin is 5 g. How fast is the coin moving to stay at this height?If the velocity is halved what will the height of the coin be now?

Use Excel/Megastat to find the discrete probability and cumulative probability of the Binomial distribution with probability of success p = 0.3 and n = 70.

Find its mean and variance.

Based upon the chart on Excel, what can you conclude about the binomial convergence?

Use binom.dist function on Excel and sketch the curve.

Stephen Hall is a 25 year-old with an entrepreneurial dream and an eclectic background. His dream is to start a travel agency that specializes in sports-related trips. These would include travel packages to attend professional sports events throughout the world and multi-country tours that are built around specific sporting competitions. Stephen knows there are travel agencies that already do this, but he feels it is a growing market and his knowledge of sports and his ability to work well with customers should help him be successful. He estimates he needs $150,000 bankable business plans for entrepreneurial ventures 236 to start this business, most of which will go into marketing expenses. His father has agreed to give him $50,000 and now he is writing a plan to show to potential investors. Stephen’s background includes interest and experience in many sports. He was an excellent wrestler in high school and college where he majored in computer science and graduated with a 2.8 grade-point average. After graduating, he worked at a storefront travel agency that had no particular specialty. He currently is a customer-service rep for a regional airline at the major airport near his home. While in high school and college, Stephen held many part-time jobs including running the deep-fat fryer in a fast food restaurant, working for a moving company, and being a security guard at a movie theater. Without overstating his qualifications, Stephen wants to point out his knowledge, relevant work experience, and personal skills that will make potential investors confident in supporting his venture. But he feels somewhat defensive talking about his background. His school career was not stellar and his jobs have been largely minimum wage and clerical. Stephen is considering not including a resume in his plan and avoiding discussion of his own background in the text of his business plan. He is also wonders if there is some way to define his business strategy that would better match his qualifications or if he can describe his experience and skills in the best light without exaggerating. 1. Playing the role of a potential investor, what do you consider Stephen’s strengths and weaknesses? 2. What kind of resume should Stephen prepare? 3. Write a one paragraph description of Stephen that stresses how his qualifications and abilities could make this venture successful.

A financial institution has brought together two firms who seek access to new debt capital for expansions of their operations.

Company CCC is concerned about rising interest rates and seeks fixed rate financing, while company DDD is prepared to take what it believes to be the attractive current variable rate which is on offer.

The two firms have existing arrangements in place for sources of financing, however CCC can attract funds from the Eurodollar market at what it believes to be beneficial rates.

CCC: Fixed: 9%

CCC: Floating: LIBOR+3.5%

DDD: Fixed: 11%

DDD: Floating: LIBOR+6.9%

1. Assuming no transaction costs, clearly indicate the size of any observed mispricing of risk. (1 mark)
2. Clearly indicate any absolute advantage in financing. Why is this likely to be the case? (1 mark)
3. Clearly indicate any comparative advantages in financing. (1 mark)
4. The financial institution helps to create a swap which is beneficial to both parties and requires a net total compensation package of 0.2% of the total funds involved (this does not mean 0.2% from each company, this means 0.2% total compensation). Assume that any available benefits are split evenly between the two companies and design a swap which is acceptable to both companies and to the financial institution. Clearly indicate the swap rates that the two companies and the financial institution are using. Clearly indicate the final borrowing rate for each company.