Assignment # 1 – Return on Financial Assets You are to

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Get college assignment help at uniessay writers Assignment # 1 – Return on Financial Assets You are to solve the following problems: 1. Consider the following four debt securities, which are identical in every characteristic except as noted: W: A corporate bond rated AAA X: A corporate bond rate BBB Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y List the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work. 2. Explain how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter. 3. One year ago, you bought a bond for $10,000. You received interest of $400 at the end of the year, as well as your $10,000 principal. If the inflation rate over the last year was five percent, calculate the real return. Show your work. 4. Suppose that the price of a stock is $50 at the beginning of a year and $53 at the end of the year, and it pays a dividend of $2 during the year. Calculate the stock’s current yield, capital-gains yield, and the return. Show your work for three separate calculations. 5. Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average, and the interest rate on three-month T-bills will be two percent. Calculate a stock with a beta of -0.3, 0.7, and 1.6. Show your work for three separate calculations. The format of the assignment is to be as follows: o Typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format. o Type the question followed by your solution. o A title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date. NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.

the Uter’s income is $600. the initial price of beer is

the Uter’s income is $600. the initial price of beer is $8 suppose that the government imposes a tax on beer that causes the price of beer to increase to 16. calculate the CV and EV associated with this price increase. how would you interpret these

assignment on list down three different product that operate under monopoly

assignment on list down three different product that operate under monopoly form of market. are the price charged justified or not . what are the steps taken by the govt. to check the prices from being over charged by the monopolist.

Bill is a Von-Neumann Morgenstern expected utility maximizer with a well-behaved,

Bill is a Von-Neumann Morgenstern expected utility maximizer with a well-behaved, continuously dierentiable utility function. Bill is presented with the following choices: A: $1000 for sure B: 8< : 50% chance of $800 50% chance of $1500 C: $500 for sure D: 8>>>>>>>>>>: 25% chance of $400 25% chance of $900 25% chance of $800 25% chance of $1,500

In the late 1990’s a growing number of economists argued that

In the late 1990’s a growing number of economists argued that policy makers were focusing too much on fighting inflation. The economists also argued that the technical level of potential output had risen. Show their argument using the AD-AS model

1. What are the different methods of measuring national income? Which

1. What are the different methods of measuring national income? Which methods have been followed in India? 2. What do you understand by the investment multiplier? In what way does it defend the policy of public works on the part of the state during business depression? 3. Discuss the various phases of business cycle: (i) Are cyclical fluctuations necessary for economic growth? (ii) Suggest appropriate fiscal and monetary policies for depression. 4. Case Study Please read the case study given below and answer questions given at the end. Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment. The yearly volume of output is 15,000 units. The selling price and cost per unit are shown below: Selling price $200 Costs: Direct material $35 Direct labor 50 Variable overhead 25 Variable selling expenses 25 Fixed selling expenses 15 150 Unit profit before tax $ 50 Management is evaluating the alternative of performing the necessary customizing to allow Electron Control to sell its output directly to Q/A labs for $275 per unit. Although no added investment is required in productive facilities, additional processing costs are estimated as: Direct labor $25 per unit Variable overhead $15 per unit Variable selling expenses $10 per unit Fixed selling expenses $100,000 per year Question : A. Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.

all of the following are goals of interest groups EXCEPT

all of the following are goals of interest groups EXCEPT

#3 please.

#3 please.

please review and let me know if you can help with

please review and let me know if you can help with this.

explain how conservative and liberal might differ in the types of

explain how conservative and liberal might differ in the types of policies they advocate to counteract a recessionary gap

how conservative and liberal might differ of policies to counteract a

Get college assignment help at uniessay writers how conservative and liberal might differ of policies to counteract a recessionary gap?

“1. Define any key terms that you feel are important in

“1. Define any key terms that you feel are important in answering the following question as they are defined in the textbook and explain, in your own words what those definitions mean (5 points), and then thoroughly analyze each of the following changes in the market for loanable funds to answer the these questions Use the diagrams below, resizing them as necessary, to illustrate your analysis in explaining what happens to private savings, private investment spending, and the rate of interest if the following events occur. Assume the economy is closed (no transactions are made with foreign countries). a. The government reduces the size of its deficit to zero (10 points). b. At any given interest rate, consumers decide to save more. Assume the budget balance is zero (10 points). c. At any given interest rate, businesses become very optimistic about the future profitability of investment spending. Assume the budget balance is zero (10 points). 2. Define any key terms that you feel are important in answering the following question as they are defined in the textbook and explain, in your own words what those definitions mean (5 points), and then thoroughly analyze each situation to answer the following questions. Using aggregate demand, short-run aggregate supplies, and long-run aggregate supply curves, explain the process and causes by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Use the diagrams below, resizing them as necessary, to illustrate your analysis. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output? a. There is a decrease in households’ wealth due to a decline in the stock market (15 points). b. The government lowers taxes, leaving households with more disposable income, with no corresponding reduction in government purchases (15 points). 3. Define any key terms that you feel are important in answering the following question as they are defined in the textbook and explain, in your own words what those definitions mean (5 points), and then thoroughly analyze each situation to answer the following questions. An economy in a hypothetical country is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap—inflationary or recessionary—will the economy face after the shock, and what type of fiscal policies, giving specific examples, would help move the economy back to potential output? a. A stock market boom increases the value of stocks held by households (10 points). b. Firms come to believe that a recession in the near future is likely (10 points). c. Anticipating the possibility of war, the government increases its purchases of military equipment (10 points). d. The quantity of money in the economy declines and interest rates increase (10 points). 4. The table below shows the United States components of M1 and M2 in billions of dollars for the month of December in the years 1998 to 2007 as published in the 2008 Economic report of the President. Year Currency in circulation Traveler’s checks Checkable deposits Money market funds Time deposits smaller than $100,000 Savings deposits M1 M2 Currency in circulation as a percentage of M1 Currency in circulation as a percentage of M2 1998 460.5 8.5 626.5 728.9 952.4 1,605.0 1999 517.8 8.6 596.2 819.7 956.8 1,740.3 2000 531.2 8.3 548.0 908.0 1,047.6 1,878.8 2001 581.2 8.0 592.6 962.3 976.5 2,312.8 2002 626.3 7.8 585.6 885.3 896.0 2,778.2 2003 662.5 7.7 635.9 777.4 818.7 3,169.1 2004 697.6 7.5 671.2 697.1 829.9 3,518.3 2005 723.9 7.2 643.4 699.9 995.8 3,621.4 2006 748.9 6.7 611.4 799.4 1,170.4 3,698.6 2007 759.0 6.3 599.2 976.1 1,216.8 3,889.8 For a., b., c.,

Ted’s preference schedule for food and fun is given as: I1

Ted’s preference schedule for food and fun is given as: I1 I2 I3 ____________________________________________________ Food Fun Food Fun Food Fun 1 12 1 18 1 30 2 6 2 9 2 15 3 4 3 6 3 10 4 3 4 4.5 4 7.5 5 2.4 5 3.6 5 6 6 2 6 3 6 5 8 1.75 9 2.5 10 4 a. Ted has $24 to spend on food and fun. Given that prices of food and fun are $2 and $6, respectively graph Ted’s indifference curves and budget line. Find the utility-maximizing quantities of food and fun that Ted will purchase. b. Suppose Ted’s income increases to $30. Graph the new budget line on the same preference schedule. What quantities of food and fun will Ted buy, if Ted spends all his money on food and fun? c. Suppose Ted’s income increases to $42. Graph the new budget line on the same preference schedule. What quantities of food and fun will Ted buy, if Ted spends all his money on food and fun?

A firm has fixed cost of $60 and a variable cost

A firm has fixed cost of $60 and a variable cost of $45. what is the Total cost, average fixed cost, average variable cost, average total cost and marginal cost? Please explain how you arrive at the answer.

Use the plotting tool to place an orange square at the

Use the plotting tool to place an orange square at the point on the total cost curve that corresponds to average variable cost = $10 per pizza. (Hint: This is the lowest value of average variable cost for Mama’s Gourmet Pizza.)

A publisher faces the following demand

A publisher faces the following demand

tc=$41,000,000 500Q .005Q^2 mc dtc/d1=$500 .01Q calculate the profit-maximizing level calculate the company’s optimal profit

tc=$41,000,000 500Q .005Q^2 mc dtc/d1=$500 .01Q calculate the profit-maximizing level calculate the company’s optimal profit and optimal profit as a percentage of sales revenue (profit margin)

Suppose that TC=100 15qm were TC is total cost and q is

Suppose that TC=100 15qm were TC is total cost and q is the quantity produced. What is the minimum price necessary for this firm to produce any output in the short run?

TC=100 15Q TR-TC=0 P=?

TC=100 15Q TR-TC=0 P=?

Complete a one page answer to question below. Include ideas on

Complete a one page answer to question below. Include ideas on productivity and savings rates. What changes took place during the Industrial Revolution that made sustained economic growth possible? Your answer should be concise and double-spaced. If necessary, use bullet points to list the changes that took place.

1. Post your comments on the following questions: o Should we

1. Post your comments on the following questions: o Should we remove all barriers to immigration into the United States? What would be the outcome? o If we could let in an extra hundred thousand immigrants every year, should we favor certain immigrants over others? Why? 2. After posting your responses to the above questions, read the article at the web site indicated below: Impact of Immigration on a Different America (http://www.cis.org/articles/1999/sac2-2-99.html) 3. Make another post regarding your previous views. This post should be a thread or response to your original post. In your response, address the following: o Have your views changed? o Do you agree or disagree with the article? o Is there a relationship between immigration and U.S. labor productivity? Why? Please make your initial post by midweek, and respond to at least one other student’s post by the end of the week. Please check the Course Calendar for specific due dates.

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