In: Finance
Graphically explain price floor and price ceiling. Do these meddle with rationing function of prices? Carefully explain
In: Economics
The data is for stock ZZZ; price and dividend history are as follows:
Year Beginning-of-Year Price Dividend Paid at Year-End
2015 $118 $3
2016 126 3
2017 110 3
2018 115 3
What are the arithmetic and geometric average time-weighted rates of return for the investor?
| A. |
Arithmetic mean is 2.09% and the geometric average is 1.70% |
|
| B. |
Arithmetic mean is 2.09% and the geometric average is 1.90% |
|
| C. |
Arithmetic mean is 2.39% and the geometric average is 1.70% |
|
| D. |
Arithmetic mean is 2.09% and the geometric average is 1.90% |
In: Finance
Cisco stock price is $20 per share now. Investor A expects the stock price to go up because of the 5G technology breakthrough. With $10,000 available, investor A will choose from the following alternative investment strategies to make profit from the price change.
1) He will invest all the money buying Cisco stocks at the current price $20. In one month, if the stock price of Cisco increases to $25, what is his total dollar amount profit? (4 points)
2) Instead, he will invest all the money buying call option of Cisco stock at a premium of C=$1.5 per share with strike price $19 and one month maturity. In one month, if the stock price of Cisco increases to $25, what is his total dollar amount profit / loss? (4 points)
3) Instead, he will write 10,000 put options on Cisco stock at a premium of P=$0.5 per share with strike price of $20 and one month maturity date. In one month, if the stock price of Cisco increases to $25, what would be his total dollar amount profit / loss? (4 points)
4) Investor A did exactly the same transactions as above, but stock price of Cisco drops to $5 at the end of the month because of unexpected CEO’s scandal. Recalculate the dollar amount of profit/loss of Investor A under all the previousthree different investment strategies. (5 points)
In: Finance
Collect the weekly share price data (adjusted close) of State street corporation and the price data for the S&P500 market index for the period of one year. Calculate the weekly returns and graph the returns of the share prices and the index over the period (assume no dividends)
In: Finance
| Year | # Cool Ranch | Price of Cool Ranch | # Nacho Cheesier | Price of Nacho Cheesier |
| 2005 | 10 | $5 | 20 | $5 |
| 2006 | 15 | $4 | 20 | $6 |
Suppose the nation of El Dorito produces only two products, Cool Ranch and Nacho Cheesier. The prices and quantities are shown for two years above.
What was nominal GDP in 2005? It was .
What was nominal GDP in 2006? It was .
Now determine what Real GDP was in 2005 using 2006 dollars. It was .
Just for fun, figure out what Real GDP was in 2006 using 2005 as the base year. .
Now if we use 2005 for the base year again, what is the GDP deflator for 2006? Use at
In: Economics
Year # Cool Ranch Price of Cool Ranch # Nacho Cheesier Price of Nacho Cheesier 2005 10 $5 20 $5 2006 15 $4 20 $6 Suppose the nation of El Dorito produces only two products, Cool Ranch and Nacho Cheesier. The prices and quantities are shown for two years above. What was nominal GDP in 2005? It was Blank 1. Fill in the blank, read surrounding text. . What was nominal GDP in 2006? It was Blank 2. Fill in the blank, read surrounding text. . Now determine what Real GDP was in 2005 using 2006 dollars. It was Blank 3. Fill in the blank, read surrounding text. . Just for fun, figure out what Real GDP was in 2006 using 2005 as the base year. Blank 4. Fill in the blank, read surrounding text. . Now if we use 2005 for the base year again, what is the GDP deflator for 2006? Blank 5. Fill in the blank, read surrounding text. Use at least two decimal places!
In: Economics
(House Selling Price) The data below show the selling price, square footage, bedrooms, and age of houses that have sold in a neighborhood in the last six months. Selling price Square footage Bedrooms Age 64,000 1,670 2 30 59,000 1,339 2 25 61,500 1,712 3 30 79,000 1,840 3 40 87,500 2,300 3 18 92,500 2,234 3 30 95,000 2,311 3 19 113,000 2,377 3 7 115,000 2,736 4 10 138,000 2,500 3 1 142,500 2,500 4 3 144,000 2,479 3 3 145,000 2,400 3 1 147,500 3,124 4 0 144,000 2,500 3 2 155,500 4,062 4 10 165,000 2,854 3 3 Develop seven regression models as below using the corresponding Excel data. ( Model 1) Y = selling price, X 1 = square footage (House Selling Price Model 1 Data) ( Model 2) Y = selling price, X2 = bedrooms (House Selling Price Model 2 Data) ( Model 3) Y = selling price, X3 = age (House Selling Price Model 3 Data) ( Model 4) Y = selling price, X 1 = square footage, X2 = bedrooms (House Selling Price Model 4 Data) ( Model 5) Y = selling price, X 1 = square footage, X3 = age (House Selling Price Model 5 Data) ( Model 6) Y = selling price, X2 = bedrooms, X3 = age (House Selling Price Model 6 Data) ( Model 7) Y = selling price, X 1 = square footage, X2 = bedrooms, X3 = age (House Selling Price Model 7 Data) (House Selling Price) Models 4, 5, and 6 are multiple regression models with two independent variables. Model 7 is a multiple regression model with three independent variables. (a) The adjusted r2 value of model 4 is ___. [Answer format: one decimal place] (b) The adjusted r2 value of model 5 is ___. [Answer format: two decimal places] (c) The adjusted r2 value of model 6 is ___. [Answer format: one decimal place] (d) The adjusted r2 value of model 7 is ___. [Answer format: two decimal places] Write your answer(s) as 1.2, 3.45, 6.7, 8.91
In: Statistics and Probability
critically examine how price formation for contracts determines a price for any crude oil.Include a detailed discussion of crude oil benchmarks
In: Finance
For a monopolist, marginal revenue equals
Multiple Choice Price. Price times quantity. The change in total revenue divided by the change in quantity. The change in quantity divided by the change in total revenue
In: Economics