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ECON 107 University Riverside Introductory Econometrics Regression Discussion
This course will cover an introduction to the basic methods of econometrics. The focus of the course will be on providing ...
ECON 107 University Riverside Introductory Econometrics Regression Discussion
This course will cover an introduction to the basic methods of econometrics. The focus of the course will be on providing a quantitative approach to economics through the linear regression models (conditional means), which are also useful in a large number of applied subjects such as business and finance, sociology, biology, and mathematics, among others. Assumptions, estimation and testing of the regression models will be covered.
ECO 550 Strayer University Economics Essay
Please answer all questions 1-9 and include work ****The document is also attached****Question 1You are serving as the cha ...
ECO 550 Strayer University Economics Essay
Please answer all questions 1-9 and include work ****The document is also attached****Question 1You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k event. The event is staged entirely by volunteers and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money, but to prompt awareness. As the chair, you set a financial goal to break even on the one and only cost of the event, a fitness bag with the community seal and the event motto, “I AM ON THE RIGHT TRACK!”The cost of the bags, which must be ordered in batches of 100, are: Bags Fixed Cost Variable Cost Total Cost Marginal Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Question 2 Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? Orders must be placed in blocks of 100 bags.Please select any/all viable approaches below: Use the profit maximizing rule, MR ≥ MC, buy 300 bags. Use the profit maximizing rule, MR ≥ MC, buy 200 bags. Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200. Question 3Your marketing department just undertook a major advertising campaign promoting the quality of your Best Brand Bike Shorts—BBB Shorts. They have provided you with an estimate of the success of the campaign stating: “the price elasticity of demand has decreased from-5.76 to -3.76.”Before the campaign, your price was $240 per pair of BBB Shorts. What should the new price be?Please enter the new price here: $[a]Question 4Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.Complete the table below for the combined market of parcels and packages. Price Parcels and Packages TR MR TC MC MR-MC Profit 50 5,000 1,600 3,400 90 10,800 83 2,300 10 73 8,500 80 190 15,200 63 3,000 10 53 260 18,200 43 3,700 10 33 14,500 60 19,800 23 4,400 10 13 15,400 50 400 20,000 3 5,100 10 -7 470 18,800 -17 5,800 10 -27 13,000 30 16,200 -37 6,500 10 -47 9,700 20 610 12,200 -57 7,200 10 -67 10 680 6,800 -77 7,900 10 -87 -1,100 Question 5Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.Complete the table below for the parcels market. Price Parcels TR MR TC MC MR-MC Profit 100 0 0 1,150 90 4,500 90 1,650 10 80 2,850 100 8,000 70 2,150 10 60 5,850 70 150 10,500 50 2,650 10 40 7,850 60 200 12,000 30 3,150 10 20 50 12,500 10 3,650 10 0 8850 300 12,000 -10 4,150 10 -20 7850 30 350 10,500 -30 4,650 10 -40 20 8,000 -50 5,150 10 -60 2850 450 4,500 -70 5,650 10 -80 -1,150 Question 6Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.Complete the table below for the packages market. Price Packages TR MR TC MC MR-MC Profit 100 50 5,000 450 4,550 70 6,300 65 650 10 55 5,650 80 7,200 45 850 10 35 6,350 70 110 7,700 25 1,050 10 15 130 7,800 5 1,250 10 -5 6,550 50 7,500 -15 1,450 10 -25 6,050 40 170 6,800 -35 1,650 10 -45 190 5,700 -55 1,850 10 -65 3,850 20 4,200 -75 2,050 10 -85 10 230 2,300 -95 2,250 10 -105 50 Question 7Should the delivery service charge one price or will segmentation increase profits? Support your conclusion by calculating the profit from each strategy provided in Questions 4, 5, & 6. Question 8You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. The table below shows the customer preferences. Your costs are $100 for the first booking and $50 for each additional booking."We Book Your Honeymoon Tour" Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 Given the preferences, would bundling improve profits over the high-cost strategy? Support your conclusion by showing if (by how) profits differ under each strategy. Question 9Follow up question (note that the dollar amounts have not changed from the previous scenario.)You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. The table below shows the customer preferences. Your costs are $100 for the first booking and $50 for each additional booking."We Book Your Honeymoon Tour" Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 You know that about 21% of your customers decline cruises because of seasickness. At least 12% decline the casino trip saying they don't believe in gambling. As a rough approximation, you estimate that approximately 33% of your customers will never bundle. Given the preferences distribution, will mixed bundling increase profits? You must show the calculations that support your conclusion.
2 pages
Finance Discussion
Considering the bank you currently use, create performance criteria and then rate your bank against the criteria you devel ...
Finance Discussion
Considering the bank you currently use, create performance criteria and then rate your bank against the criteria you developed. Make a suggestion for ...
4 pages
Cf Assessment 2 Word Template Mod
1. Identify the savings goal and the time frame you determined for reaching your goal. Why is the time frame you identifie ...
Cf Assessment 2 Word Template Mod
1. Identify the savings goal and the time frame you determined for reaching your goal. Why is the time frame you identified realistic? How did you ...
UNH Arrow Pratt Measure of Absolute Risk Aversion Financial Economics Questions
1. (20) Automobile dealerships often advertise promotions such as “no payments for 90 days!” or similar deals that sou ...
UNH Arrow Pratt Measure of Absolute Risk Aversion Financial Economics Questions
1. (20) Automobile dealerships often advertise promotions such as “no payments for 90 days!” or similar deals that sound too good to be true. The goal, of course, is to entice buyers with the ever-tantalizing prospect of getting something now without having to worry about how to pay for it until later. Suppose that you are looking to buy a car priced at $35,000 and are offered a loan with a down payment of $5,000 and an APR of 6% over 60 months.(a) (5) Calculate the monthly payment for this loan.(b) (5) Now suppose that the dealer offers you “no money down, no interest, and no payments for 90 days!” and you naively interpret this to imply that the remaining payments are unchanged. In present value terms, what price do you think that you are paying for the car?(c) (5) Somewhat coming to your senses, you realize that your monthly payment will go up to offset the missing initial payments, but still believe that you will see some savings because of the time value of avoiding interest for three months. What monthly payment do you calculate and what do price do you think you are paying?(d) (5) Finally, you realize that if the dealer had any intention of offering you a discount, he would have let you know how much you’d be saving, and that “no interest” simply means that any unpaid interest is added to the principal. What is your actual monthly payment?2. (20) One of the shortcomings of the dividend discount model is that it assumes that the firm can grow at the same rate indefinitely, and projecting a company’s future prospects based only on a brief snapshot of its current status can lead to wildly unrealistic estimates of its growth opportunities. Suppose that shares of Fly By Night Inc. are currently priced at P0 = 100, compared to a book value of B0 = 20 per share, with forecasted earnings of E1 = 8 and a scheduled dividend payment of D1 = 3 per share.(a) (5) Using the constant growth model, estimate Fly By Night’s growth rate g and market capitalization rate r. Do these numbers seem plausible to you?(b) (5) Upon closer inspection, you observe that all of Fly By Night’s growth opportunities consist only of a single investment project this year. After this year it cannot repeat this or undertake any other positive NPV project, and must pay out all subsequent earnings to shareholders. Suppose you believe that you are the only one who is aware of this, while all other investors are convinced that the stock will continue growing at the same rate forever. What should the stock be priced at?(c) (10) You now realize that all investors are well aware of Fly By Night’s limited growth opportunities, and that this is already reflected in its price. What is the correct discount rate?3. (30) Consider a portfolio choice problem with a risk-free asset with return rf and two risky assets, the first with mean return μ1 = 0.12 and standard deviation σ1 = 0.4 and the second with mean μ2 = 0.08 and standard deviation σ2 = 0.3, with correlation ρ12 = 0. For any stock portfolio let λ denote the proportion invested in stock 1.(a) (10) Find the weight λ ̃ that minimizes portfolio standard deviation σp.(b) (5) Consider the tangency portfolio and let λ∗ denote the weight it places on stock 1. Find the conditionthat defines this value, but do not solve for it, and explain how it would compare to λ ̃.(c) (5) Now consider varying the risk-free rate rf . Again without solving anything, explain how you wouldexpect λ∗ to vary as rf increases.(d) (10) Show how the slope of the tangent line changes with rf . Recall a useful theorem that allows you todo this without ever actually solving for λ∗.4. (30) Let Cara be a consumer who she exhibits no time preference δ = 1 and receives an endowment of W ineach of two periods. There exists a single risky asset currently priced at P0 = 1 that next period has payoffs of 3 w/prob.32P1= 0 w/prob.13 1Consider Cara’s two-period utility maximization problem.max u(C0) + δE[u(C1)]ξs.t. C0 = W − ξP0 C1 = W + ξP1(a) (10) Find the first order condition for Cara’s optimization problem.(b) (10)Predictably,Cara’sutilityfunctionexhibitsconstantabsoluteriskaversionu(C)=1−e−αC. Showthat the number of shares she buys does not depend on her endowment W.(c) (10) Suppose that Cara has a twin sister, Cora, who faces the same optimization problem but whoseutility function instead exhibits constant relative risk aversion u(C) = C1−ρ . Show that the number of 1−ρshares she buys is proportional to her endowment W.
UOP The Federal Reserve Government and the Economy Research Paper
Assessment Information
To complete this assessment you will write a report comprised of two parts. In Part 1, you will ana ...
UOP The Federal Reserve Government and the Economy Research Paper
Assessment Information
To complete this assessment you will write a report comprised of two parts. In Part 1, you will analyze corrective actions taken by the Federal Reserve as a result of a crisis related to the Great Recession. In Part 2, you will analyze a government intervention program and the market failure that led to the intervention.
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ECON 107 University Riverside Introductory Econometrics Regression Discussion
This course will cover an introduction to the basic methods of econometrics. The focus of the course will be on providing ...
ECON 107 University Riverside Introductory Econometrics Regression Discussion
This course will cover an introduction to the basic methods of econometrics. The focus of the course will be on providing a quantitative approach to economics through the linear regression models (conditional means), which are also useful in a large number of applied subjects such as business and finance, sociology, biology, and mathematics, among others. Assumptions, estimation and testing of the regression models will be covered.
ECO 550 Strayer University Economics Essay
Please answer all questions 1-9 and include work ****The document is also attached****Question 1You are serving as the cha ...
ECO 550 Strayer University Economics Essay
Please answer all questions 1-9 and include work ****The document is also attached****Question 1You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k event. The event is staged entirely by volunteers and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money, but to prompt awareness. As the chair, you set a financial goal to break even on the one and only cost of the event, a fitness bag with the community seal and the event motto, “I AM ON THE RIGHT TRACK!”The cost of the bags, which must be ordered in batches of 100, are: Bags Fixed Cost Variable Cost Total Cost Marginal Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Question 2 Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? Orders must be placed in blocks of 100 bags.Please select any/all viable approaches below: Use the profit maximizing rule, MR ≥ MC, buy 300 bags. Use the profit maximizing rule, MR ≥ MC, buy 200 bags. Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200. Question 3Your marketing department just undertook a major advertising campaign promoting the quality of your Best Brand Bike Shorts—BBB Shorts. They have provided you with an estimate of the success of the campaign stating: “the price elasticity of demand has decreased from-5.76 to -3.76.”Before the campaign, your price was $240 per pair of BBB Shorts. What should the new price be?Please enter the new price here: $[a]Question 4Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.Complete the table below for the combined market of parcels and packages. Price Parcels and Packages TR MR TC MC MR-MC Profit 50 5,000 1,600 3,400 90 10,800 83 2,300 10 73 8,500 80 190 15,200 63 3,000 10 53 260 18,200 43 3,700 10 33 14,500 60 19,800 23 4,400 10 13 15,400 50 400 20,000 3 5,100 10 -7 470 18,800 -17 5,800 10 -27 13,000 30 16,200 -37 6,500 10 -47 9,700 20 610 12,200 -57 7,200 10 -67 10 680 6,800 -77 7,900 10 -87 -1,100 Question 5Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.Complete the table below for the parcels market. Price Parcels TR MR TC MC MR-MC Profit 100 0 0 1,150 90 4,500 90 1,650 10 80 2,850 100 8,000 70 2,150 10 60 5,850 70 150 10,500 50 2,650 10 40 7,850 60 200 12,000 30 3,150 10 20 50 12,500 10 3,650 10 0 8850 300 12,000 -10 4,150 10 -20 7850 30 350 10,500 -30 4,650 10 -40 20 8,000 -50 5,150 10 -60 2850 450 4,500 -70 5,650 10 -80 -1,150 Question 6Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.Complete the table below for the packages market. Price Packages TR MR TC MC MR-MC Profit 100 50 5,000 450 4,550 70 6,300 65 650 10 55 5,650 80 7,200 45 850 10 35 6,350 70 110 7,700 25 1,050 10 15 130 7,800 5 1,250 10 -5 6,550 50 7,500 -15 1,450 10 -25 6,050 40 170 6,800 -35 1,650 10 -45 190 5,700 -55 1,850 10 -65 3,850 20 4,200 -75 2,050 10 -85 10 230 2,300 -95 2,250 10 -105 50 Question 7Should the delivery service charge one price or will segmentation increase profits? Support your conclusion by calculating the profit from each strategy provided in Questions 4, 5, & 6. Question 8You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. The table below shows the customer preferences. Your costs are $100 for the first booking and $50 for each additional booking."We Book Your Honeymoon Tour" Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 Given the preferences, would bundling improve profits over the high-cost strategy? Support your conclusion by showing if (by how) profits differ under each strategy. Question 9Follow up question (note that the dollar amounts have not changed from the previous scenario.)You help couples book their perfect honeymoon. You currently offer plans for a cruise and for a casino stay. Your sales manager is getting her MBA and has suggested you might consider bundling as a way to boost profits. The table below shows the customer preferences. Your costs are $100 for the first booking and $50 for each additional booking."We Book Your Honeymoon Tour" Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 You know that about 21% of your customers decline cruises because of seasickness. At least 12% decline the casino trip saying they don't believe in gambling. As a rough approximation, you estimate that approximately 33% of your customers will never bundle. Given the preferences distribution, will mixed bundling increase profits? You must show the calculations that support your conclusion.
2 pages
Finance Discussion
Considering the bank you currently use, create performance criteria and then rate your bank against the criteria you devel ...
Finance Discussion
Considering the bank you currently use, create performance criteria and then rate your bank against the criteria you developed. Make a suggestion for ...
4 pages
Cf Assessment 2 Word Template Mod
1. Identify the savings goal and the time frame you determined for reaching your goal. Why is the time frame you identifie ...
Cf Assessment 2 Word Template Mod
1. Identify the savings goal and the time frame you determined for reaching your goal. Why is the time frame you identified realistic? How did you ...
UNH Arrow Pratt Measure of Absolute Risk Aversion Financial Economics Questions
1. (20) Automobile dealerships often advertise promotions such as “no payments for 90 days!” or similar deals that sou ...
UNH Arrow Pratt Measure of Absolute Risk Aversion Financial Economics Questions
1. (20) Automobile dealerships often advertise promotions such as “no payments for 90 days!” or similar deals that sound too good to be true. The goal, of course, is to entice buyers with the ever-tantalizing prospect of getting something now without having to worry about how to pay for it until later. Suppose that you are looking to buy a car priced at $35,000 and are offered a loan with a down payment of $5,000 and an APR of 6% over 60 months.(a) (5) Calculate the monthly payment for this loan.(b) (5) Now suppose that the dealer offers you “no money down, no interest, and no payments for 90 days!” and you naively interpret this to imply that the remaining payments are unchanged. In present value terms, what price do you think that you are paying for the car?(c) (5) Somewhat coming to your senses, you realize that your monthly payment will go up to offset the missing initial payments, but still believe that you will see some savings because of the time value of avoiding interest for three months. What monthly payment do you calculate and what do price do you think you are paying?(d) (5) Finally, you realize that if the dealer had any intention of offering you a discount, he would have let you know how much you’d be saving, and that “no interest” simply means that any unpaid interest is added to the principal. What is your actual monthly payment?2. (20) One of the shortcomings of the dividend discount model is that it assumes that the firm can grow at the same rate indefinitely, and projecting a company’s future prospects based only on a brief snapshot of its current status can lead to wildly unrealistic estimates of its growth opportunities. Suppose that shares of Fly By Night Inc. are currently priced at P0 = 100, compared to a book value of B0 = 20 per share, with forecasted earnings of E1 = 8 and a scheduled dividend payment of D1 = 3 per share.(a) (5) Using the constant growth model, estimate Fly By Night’s growth rate g and market capitalization rate r. Do these numbers seem plausible to you?(b) (5) Upon closer inspection, you observe that all of Fly By Night’s growth opportunities consist only of a single investment project this year. After this year it cannot repeat this or undertake any other positive NPV project, and must pay out all subsequent earnings to shareholders. Suppose you believe that you are the only one who is aware of this, while all other investors are convinced that the stock will continue growing at the same rate forever. What should the stock be priced at?(c) (10) You now realize that all investors are well aware of Fly By Night’s limited growth opportunities, and that this is already reflected in its price. What is the correct discount rate?3. (30) Consider a portfolio choice problem with a risk-free asset with return rf and two risky assets, the first with mean return μ1 = 0.12 and standard deviation σ1 = 0.4 and the second with mean μ2 = 0.08 and standard deviation σ2 = 0.3, with correlation ρ12 = 0. For any stock portfolio let λ denote the proportion invested in stock 1.(a) (10) Find the weight λ ̃ that minimizes portfolio standard deviation σp.(b) (5) Consider the tangency portfolio and let λ∗ denote the weight it places on stock 1. Find the conditionthat defines this value, but do not solve for it, and explain how it would compare to λ ̃.(c) (5) Now consider varying the risk-free rate rf . Again without solving anything, explain how you wouldexpect λ∗ to vary as rf increases.(d) (10) Show how the slope of the tangent line changes with rf . Recall a useful theorem that allows you todo this without ever actually solving for λ∗.4. (30) Let Cara be a consumer who she exhibits no time preference δ = 1 and receives an endowment of W ineach of two periods. There exists a single risky asset currently priced at P0 = 1 that next period has payoffs of 3 w/prob.32P1= 0 w/prob.13 1Consider Cara’s two-period utility maximization problem.max u(C0) + δE[u(C1)]ξs.t. C0 = W − ξP0 C1 = W + ξP1(a) (10) Find the first order condition for Cara’s optimization problem.(b) (10)Predictably,Cara’sutilityfunctionexhibitsconstantabsoluteriskaversionu(C)=1−e−αC. Showthat the number of shares she buys does not depend on her endowment W.(c) (10) Suppose that Cara has a twin sister, Cora, who faces the same optimization problem but whoseutility function instead exhibits constant relative risk aversion u(C) = C1−ρ . Show that the number of 1−ρshares she buys is proportional to her endowment W.
UOP The Federal Reserve Government and the Economy Research Paper
Assessment Information
To complete this assessment you will write a report comprised of two parts. In Part 1, you will ana ...
UOP The Federal Reserve Government and the Economy Research Paper
Assessment Information
To complete this assessment you will write a report comprised of two parts. In Part 1, you will analyze corrective actions taken by the Federal Reserve as a result of a crisis related to the Great Recession. In Part 2, you will analyze a government intervention program and the market failure that led to the intervention.
Download and Review the Rubric!
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