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Unformatted text preview: (Pt)-9.81(Pt-1) ______________________* 100 = -48.7% 9.81(Pt-1) Apple Inc.'s Capital Gain Yield could be positive over this period because they got a big boost in sales (incoming college freshman 4. This question concerns the Week 4 “Am I Diversified?” video. Jim Cramer, the host of CNBC’s “Mad Money” show, has a five company test for diversification that he applies to the portfolios of the callers from his show. (a) Is there a dimension along which Mankiw’s textbook is likely to be critical of the test? Yes or No. Give an explanation to support your answer: (i) one of the figures from the Mankiw book; (ii) a detail or detail(s) about Cramer’s test from the video. (b) When discussing the five company stocks that each caller owns, explain how Cramer decides whether or not the caller is (at least somewhat) diversified? a. Cramer considers being diversified if a person owns stocks in 5 or so companies that are all...
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This note was uploaded on 02/04/2013 for the course ECON 2001.01 taught by Professor Seminkim during the Spring '10 term at Ohio State.

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