Questions
You want to make a one-year investment in a fixed-income security. You have two investment choices:...

You want to make a one-year investment in a fixed-income security. You have two investment choices: a Treasury security and a Treasury inflation-protected security (TIPS). The nominal interest rate for the Treasury security is 4% and TIPS promises 1% real interest rate. You use scenario analysis to compare two securities. There are two possible scenarios with equal probabilities: High inflation and low inflation. The inflation rate will be 0% in the low state and 6.1% in the high state. (Do not use % approximation by adding or subtracting)

(a) Compute nominal and real realized returns for each asset with respect to each inflation scenario, and calculate expected return of each asset. (Round to the nearest tenth)

Nominal Returns Before Taxes

Low Inflation High Inflation Expected Return
Treasury Security
TIPS

Real Returns Before Taxes

Low Inflation High Inflation Expected Return
Treasury Security
TIPS

b) According to (a), which security will investors choose?

c) Now suppose the investor is subject to tax with marginal tax rate 40%. Compute nominal and real realized returns for each asset with respect to each inflation scenario, and calculate expected return of each asset. (Round to the nearest tenth)

Nominal Returns Before Taxes

Low Inflation High Inflation Expected Return
Treasury Security
TIPS

Real Returns After Taxes

Low Inflation High Inflation Expected Return
Treasury Security
TIPS

(d) What security would the investor choose if the investor has to pay tax with marginal tax rate 40%?

e) Explain why expected return and risk of TIPS changed after taxes.

In: Finance

1. How much energy is required to change a 41 g ice cube from ice at...

1. How much energy is required to change a 41 g ice cube from ice at −14◦C to steam at 115◦C? The specific heat of ice is 2090 J/kg · ◦ C, the specific heat of water is 4186 J/kg · ◦ C, the specific heat of stream is 2010 J/kg · ◦ C, the heat of fusion is 3.33 × 105 J/kg, and the heat of vaporization is 2.26 × 106 J/kg. Answer in units of J.

In: Physics

The table below shows the life expectancy for an individual born in the United States in...

The table below shows the life expectancy for an individual born in the United States in certain years. Year of Birth Life Expectancy 1930 59.7 1940 62.9 1950 70.2 1965 69.7 1973 71.4 1982 74.5 1987 75 1992 75.7 2010 78.7 For the least squares line Y(hat) = bX + a a = (#.##) b = (#.##) r = (#.####); p (< or > or =) alpha The estimated life expectancy for an individual born in 1950 and for one born in 1982 is and , respectively. (#.##)

In: Statistics and Probability

The number of U.S. dial-up Internet households stood at 42.5 million at the beginning of 2004...

The number of U.S. dial-up Internet households stood at 42.5 million at the beginning of
2004 and was projected to decline at the rate of 3.9 million households per year for the next 6
years.

a) Find a linear function f giving the projected U.S. dial up Internet households (in
millions) in year t, where t = 0 corresponds to the beginning of 2004.

b) What is the projected number of U.S. dial-up Internet households at the beginning
of 2010?

In: Advanced Math

The year-end net income (in millions) for a company for the years 2004-2015 are shown in...

The year-end net income (in millions) for a company for the years 2004-2015 are shown in the provided data set (incomedata.xlsx). Graph the best chart which effectively displays the income data over time.

Income Data:

Year Net income
2004 25.2
2005 32.8
2006 31.5
2007 31.3
2008 34.8
2009 37.1
2010 62.1
2011 101.6
2012 75.5
2013 83.3
2014 117.4
2015 152.6

In: Statistics and Probability

According to the College Board, scores on the math section of the SAT Reasoning college entrance...

According to the College Board, scores on the math section of the SAT Reasoning college entrance test for the class of 2010 had a mean of 516 and a standard deviation of 116. Assume that they are roughly normal. A) What was the interval spanned by the middle 68 percent of scores? B) How high must a student score to be in the top 2.5 percent of scores? What are the quartiles of scores from the math section of the SAT Reasoning Test, according to the distribution in Exercise 46?

In: Statistics and Probability

1- Describe Health Disparities between men and women, provide examples. 2- What are common health related...

1- Describe Health Disparities between men and women, provide examples.

2- What are common health related issues for men and women and how can the community nurse help eliminate the disparities.

3- What are new born and infant recommendations regarding safety and what level of prevention will the nurse be implementing?

4- Describe and explain the Affordable Care Act of 2010.

5- What are some of the Adolescents health issues and how can they be prevented?

In: Nursing

1- Describe Health Disparities between men and women, provide examples. 2- What are common health related...

1- Describe Health Disparities between men and women, provide examples.

2- What are common health related issues for men and women and how can the community nurse help eliminate the disparities.

3- What are new born and infant recommendations regarding safety and what level of prevention will the nurse be implementing?

4- Describe and explain the Affordable Care Act of 2010.

5- What are some of the Adolescents health issues and how can they be prevented?

In: Nursing

Imagine that we are studying the colour coat of a population of chamoix in the Alps....

Imagine that we are studying the colour coat of a population of chamoix in the Alps. There are two morphs, white and dark brown, which we know to be genetically determined.

(a) We observe that the frequency of brown decreased quite substantially between 2010 and 2011. Give 4 different potential explanations for this decrease

(b) Imagine that we observe that the frequency of brown varies erratically over the next 4 years. Give two potential explanations for the changes in the frequency of brown

In: Biology

In Shavertown, Pennsylvania, the owner of Wilkes-Barre Bookkeeping LLC was indicted for embezzling over $375,000 of...

In Shavertown, Pennsylvania, the owner of Wilkes-Barre Bookkeeping LLC was indicted for embezzling over $375,000 of his clients’ payroll tax remittances between 2010 and 2016 and for lying to clients about his actions. Additionally, he embezzled nearly $70,000 from a nonprofit for which he was the treasurer. He was sentenced to 38 months in prison and ordered to pay restitution totaling nearly $500,000.

  • Do you think this was a fair sentence? Why or why not?

In: Accounting