Prior to writing The Wealth of Nations, Adam Smith wrote The Theory of Moral Sentiments (TMS). If you recall, greed was considered evil or a sin during the feudal period. Greed will lead us to the flames of hell and so you should provide your wealth to the Catholic Church.

The purpose of writing TMS was to distinguish “good greed” versus “bad greed”.

In the movie Wall Street, greed is portrayed as bad as Gordo Gecko ( the character played by Michael Douglas wants all the money, pleasures, properties, cars …. For himself.

Now, you might consider yourself as not being greedy – but consider this. Say you are thirsty or hungry – you go to a deli or the cafeteria (whenever it opens) and purchase a sandwich and soda for say $5.00.

In one sense, you are greedy as you want to satisfy your hunger and thirst needs. But, and this was Adam Smith’s point – you gave the cashier $5.00 and the deli can pay its employees, pay for supplies, etc.

Adam Smith considers this “good greed”.

Based on this introduction, “What do you think Adam Smith was getting at when he wrote:

Every individual...generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.

The Wealth of Nations, Book IV Chapter II

Consider this, “Do you wake up in the morning and consider, “How can I save the world?” “How can I cure Covid?”, “How can I reduce racism in the U.S.?”, “How can I help society?” Like me, to be honest probably not as we have to many other things to consider.

However, indirectly we have helped society without our intention!

How did we accomplish this? Please provide least 4 experiences or examples.

LaTeisha was finally headed back from Nigeria! This trip had been transformational but she was also

glad to head back home to hot showers, familiar food, and a routine including her own car. Two weeks in

the rural countryside is a lot.... Abuja was her new favorite city! Her church had told them all about the

amazing work the medical missionaries did and she already had her CNA so why not? It would be a great

experience and look good on her application to PA school.

And it was incredible... she helped administer vaccines, culture strep throat, detect atypical pneumonia in

coughing children, just amazing. She was impressed by the resilience of the Nigerian villagers; they were

struggling with drought, the cows were spontaneously aborting the calves, and militias visited from the

north all too often but they quietly persevering all the same. . The villagers inspired her and she knew it

was international medicine she was destined to do for her whole life.

But now, just the morning after her flight landed in Atlanta, she wasn’t feeling so well. She felt it a little

on the plane but that could have just been her fear of lying. She was pretty sure she had a fever now. She

felt kinda achy too – knees and elbows and neck. Not so fun. She still had a week before school so she

could just be lazy and recover. She slept the day away.

The next day, things were worse. Her mom insisted she call a doctor. She was vomiting now and it was...

black. Her mom also said that her eyes looked funny, yellowish. They went to an urgent care clinic near

their house. As the PA on duty, you take her case history, temperature, blood and stool samples. Her

really low blood pressure and the color of the vomit were serious indicators

4.

The pathogen causing

LaTeisha’s illness is _______

5.

This organism is severely damaging LaTeisha’s body. How does it cause damage and what isONE virulence factor

You purchase 300 shares of HON at $89 per share on margin with 75% margin ratio (25% is financed by debt). If the price changes to $51.5 after 3 months (90 days), and the interest rate on the margin loan is 8%, what is your net percentage return on this position? Assume that your brokerage uses a 365 day convention for calculating daily interest rates, and that interest compounds daily. Enter answer in percents, positive for gains, negative for losses, accurate to 2 decimal places.

Consider a four-year project with the following information: initial fixed asset investment = $570,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $30; variable costs = $22; fixed costs = $210,000; quantity sold = 87,000 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Consider a four-year project with the following information: initial fixed asset investment = $600,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $35; variable costs = $28; fixed costs = $240,000; quantity sold = 90,000 units; tax rate = 25 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places)

change in OCF/change in Q = ?

Question) According to the semi-strong form of the efficient markets hypothesis, ____.

Multiple Choice Answers) Please answer and explain!

a) stock prices do not rapidly adjust to new information.

b) corporate insiders should have no better investment performance than other investors even if allowed to trade freely.

c) future changes in stock prices cannot be predicted from any information that is publicly available.

d) arbitrage between futures and cash markets should not produce extraordinary profits.

Which of the following is/are correct regarding interest rates? Pick all the correct ones.

A young executive deposits $100 at the end of each month for 5 years into an account that earns 6% compounded monthly. How much is in the account after the 5 years? (Round your answer to the nearest cent).

$  

The executive then changes the deposits in order to have a total of $400,000 after 25 total years. What should be the revised monthly payment in order to meet the $400,000 goal? (Round your answer to the nearest cent).

$  

How much interest is earned during the 25 years?

$  

Nancy purchased $80,000 worth of common stock by borrowing $32,000 from her broker. She paid the rest to satisfy the initial margin requirement. The initial stock price is $160 per share. The maintenance margin requirement is 45%. The broker charges 8% on the margin loan. If the stock price changes from $160 to $120 one year later, will Nancy receive a margin call at this price?

One morning the Open Market Account Manager at the New York Federal Reserve Bank observes that the equilibrium (market) federal funds rate is 3.25%. Suppose the target federal funds rate is 2.5%. What does this indicate about total reserves in the banking system? What would the Account Manager decide to do (open market purchase or open market sale)? Draw a reserves market diagram to explain your answer. Label the diagram(s) neatly and show all the changes clearly.