Daily sales at a store is a random variable, with values of $100, 300, 500, and 800 with probabilities 0.2, 0.2, 0.5, and 0.1 respectively. What is the expected value of sales?

You invest $100 in a risky asset with an expected rate of return of 0.13 and a standard deviation of 0.11 and a T-bill with a rate of return of 0.03.

The slope of the capital allocation line formed with the risky asset and the risk-free asset is equal to

1. If you receive $100 in the 2nd year and $250 in the 4th year at an interest rate of 5.5%, what is the total PV of these lump sums? ANSWER: $291.65

2. What is the PV of an investment that yields $500 to be received in 5 years and $1000 to be received in 10 years at an interest rate of 4%? ANSWER: $1086.53

(Can someone please show me how you solve this, with the steps. Also how to calculate/input it onto excel. Thank you so much! ( :

Suppose that a two-year bond with a principal of $100 provides coupons at the rate of 6% per annum semiannually. Suppose that the zero-rates are

What is the bond's yield to maturity expressed with the continuous compounding?

- please use the formulas and explain step by step

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?

$  

Assume that autonomous consumption = 100, and the marginal propensity to consume = 80%.
        At what level of disposable income will savings = 0?
  
                


6. If actual investment is higher than planned investment, what is happening to business inventories?   
     
          Inventories are growing
          Inventories are shrinking
          Inventories are holding steady
          It depends upon where we are in the busienss cycle

Suppose that for a particular economy and period, investment was equal to 100, government expenditure was equal to 75, net taxes were fixed at 100, and consumption (C) was given by the consumption function C = 25 + 0.8YD where YD is disposable income and Y is GDP.

a. What is the level of equilibrium income (Y).

b. What is the value of the government expenditure multiplier? Of the tax multiplier?

c. Suppose that investment declined by 40 units to a level of 60. What will be the new level of equilibrium income? __________

4. In the question above, assume that beginning from the initial equilibrium position (investment equal to 100, government expenditure equal to 75, and net taxes fixed at 100), there was an autonomous fall in consumption and an increase in saving such that the consumption function shifted from C = 25 + 0.8YD to C = 5 + 0.8YD

a. Find the change in equilibrium income resulting from the autonomous increase in saving.

b. Calculate the level of saving before and after the shift in the consumption and, therefore, the saving function. How do you explain this result?

Market in competitive equilibrium, the demand is the demand and supply respectively are p = 100 - QD and p = 20 + (QS /3). The government introduces a subsidy of s = $4 per unit of the good sold and bought

1. Suppose the government is trying to determine the amount of subsidy (they think they can do better than s=$4), to maximize the equilibrium quantity transacted (bought and sold) in the market, yet it has a budget of $1500 to spend on the subsidy provision. What is the maximum quantity the government subsidy can induce, and what is the amount of subsidy per unit to achieve this?