Suppose the market demand can be separated into two distinct markets, where, p1= 80-5y1, p2=180-2y2, and the common cost function is C=50+40(y1+y2).
Determine the equilibrium prices and quantities in each market and the overall profits that result from actions of a third degreeprice-discriminating monopoly.
Determine the price elasticity of demand in each market, evaluated at the equilibrium prices and quantities.
What is the relationship between the price elasticity of the demand in each market and the price prevailing in each market?
In: Economics
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40%, respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. To form a complete portfolio with an expected rate of return of 9.7%, you should invest ________ of your complete portfolio in Treasury bills.
Multiple Choice
50%
36%
19%
25%
In: Finance
|
Project |
Year |
0 |
1 |
2 |
3 |
4 |
|
A |
Cash flows |
-$100 |
$35 |
$35 |
$35 |
$35 |
|
B |
Cash flows |
-$100 |
$60 |
$50 |
$40 |
$30 |
If project B is risker than project A, in which project A has WACC = 6.00% while project B has WACC = 8.50%. If these two projects are mutually exclusive, which project should the company accept?
Compute: NPV, IRR, MIRR, payback, and discounted payback period for each project.
# please with details.
In: Finance
3. Business schools A and B reported the following summary of GMAT (Graduate Management Aptitude Test) mathematics scores. Test the claim that there is a difference in means between two schools A and B. (a) At α = 1%, use the Classical approach to conclude it. (b) Using the P-value approach to conclude it. Business school A : n=50, X bar=37, S2=100 Business school B : n=40, X bar= 33, S2 = 80
Full step by step solution please, thank you
In: Statistics and Probability
| Mean | 8.00% | 11.00% | |||
| Variance | 1.71% | 2.67% | |||
| Standard deviation | 13.08% | 16.34% | |||
| Covariance | 0.20% | ||||
| Correlation | 0.09360 | ||||
|
Proportion of stocok A in portfolio |
Portfolio Variance |
Portfolio standard deviation |
Portfolio mean |
||
| 0% | 2.67% | ||||
| 10% | |||||
| 20% | |||||
| 30% | |||||
| 40% | |||||
| 50% | |||||
| 60% | |||||
| 70% | |||||
| 80% | |||||
| 90% | |||||
| 100% | |||||
1) Given the data, figure out the correlation between two stocks.
2) Fill out the table for the mean, variance, and standard deviation for the portfolio
3) Draw a plot for the relationship between risk and return, as shown below.
In: Finance
With its given resources and technology, an economy can produce either 50 units of good Y or 100 units of good X. For each of the following combinations of goods indicate whether the combination is NF (not feasible), FE (feasible and efficient), or FI (feasible but inefficient). Enter the two letters only.
20 units of good Y and 60 units of good X
25 units of good Y and 40 units of good X
30 units of good Y and 80 units of good X
Please explain :)
In: Economics
Current Capital Structure and WACC
| Weight | Cost | Weighted Cost | |
| Debt | 10% | 6.50% | 0.65% |
| Preferred | 15% | 14% |
2.10% |
| Equity | 75% | 18% | 13.50% |
| Total | 100% | 16.25% WACC |
Target Capital Structure and WACC
| Weight | Cost | Weighted Cost | |
| Debt | 40% | 6.5% | 2.6% |
| Preferred | 10% | 14% | 1.40% |
| Equity | 50% | 18% | 9% |
| Total | 100% | 13% WACC |
What are some differences between these two structures? What issues could the target capital structure create?
In: Finance
You observe two point sources of light that are spaced 5 cm apart which are each emitting light of wavelength of 420 nm. If the diameter of your pupil is 2 mm, how distant can the objects be from your eye for you to just barely resolve them?
A long, straight wire carries a steady current of 50 A. What is the magnetic field strength at a distance of 7 cm from the wire?
In: Physics
Consider a 2-year European put with a strike price of $52 on a stock whose current stock price is $50. Suppose that there are two time steps, and in each time step the stock price either moves up by 30% or moves down by 30%. Also suppose that risk-free rate is 7% per annum with continuous compounding. What is the value of the European put option?
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2.10 |
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6.10 |
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7.10 |
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4.10 |
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5.10 |
In: Finance
You have 2 fair six-sided dice: one that is red and one that is blue. You conduct a random experiment by rolling the red die first and then rolling the blue die. Use this information and answer questions 2a to 2e.
2a) Determine whether following statements are outcome or
event.
You roll a red 1 and blue 3.
You roll a red 2 and blue 5.
The sum of two dice is greater than 9.
2b) How many outcomes are there in the sample space? (Use integer)
2c) What is the probability that you roll a red 3 and blue 4? (use 4 decimal places)
2d) What is the probability that the sum of your roll is 7? (use 3 decimal places)
2e) What is the probability that the sum of your roll is 8? (3 decimal places)
In: Statistics and Probability