ECON 410: HW3
Assignment Overview: This assignment is designed to enhance your understanding of constrained optimization,
using a graphical approach or a calculus-based approach.
Required Research:
The Science of Choice, Chapter 5; Petranka
Class Notes
As
Although our intellect always longs for clarity and certainty, our nature often
finds uncertainty fascinating. Karl Von Clausewitz
ECON 410
UncertaintyFundamentals
Class 11 - Uncertainty Fundamentals
2
Grade
#of Students
A (94+
)
2
A- (90-93.9)
6
B+(86-89
FIN 330 Test 1
Spring 2010
Dr. Moffett
Student: _
1. The annual dividend at time t + 1 divided by the stock price at time t is called the:
A. annualized rate of return.
B. capital gain.
C. total annual rate of return.
D. total dollar return.
E. dividend y
ECON 410: HW2
Assignment Overview: This assignment is designed to enhance your understanding of preference relations and
utility functions.
Required Research:
The Science of Choice, Chapters 3/4; Petranka
Class Notes
Assumptions and Agreements:
1.
The ass
FIN 330
Spring 11 Test II
Dr. Moffett
Student: _
1. Peter is buying 500 shares of stock from George in the NASDAQ market. This transaction is occurring in the
_ market.
A. primary
B. secondary
C. third
D. fourth
E. fifth
2. When a firm assumes the risk of
FIN 330 Test 1
Student: _
Fall 2011
Dr. Clay M. Moffett
Fill in the answers on the scantron. If you erase, erase cleanly. Good luck and have
fun.
1.
The dividend yield is defined as the annual dividend expressed as a percentage of
the:
A. average stock pr
FIN 330
Fall 2011 Test II
Dr. Clay M. Moffett
Student: _
Fill in the answers on the scantron. If you erase, erase cleanly. Good luck and have fun.
1. Schmoo Co. is issuing new shares of stock which will trade on NASDAQ. If Peggy Lee Sue Bob
purchases 300
FIN 330
Fall 11 Test III
Dr. Moffett
Student: _
1. The rate a bank must pay the Federal Reserve to borrow reserves overnight is called the _ rate.
A. discount
B. Fed funds
C. financial overnight
D. daily
E. institutional
2. The interest rate that internat
FIN 330
Fall 11 Test III
Dr. Moffett
Student: _
1. Which one of the following is the interest rate that the largest commercial banks charge their most
creditworthy corporate customers for short-term loans?
A. discount
B. Federal funds
C. prime
D. bid
E. c
CH 1
Returns
Dollar Returns
Percentage Returns
The Historical Record
Average Returns: The First Lesson
Calculating Average Returns
Average Returns: The Historical Record
Risk Premiums
Return Variability: The Second Lesson
Frequency Distributions and Va
FIN 330
Homework Solutions
Chapter 15
3. The stock costs $65 per share, so if you invest $13,000, youll get 200 shares. The option premium is
$3.25, so an option contract costs $325. If you invest $13,000, youll get $13,000/$325 = 40
contracts. If the sto
FIN 330
Homework Solutions
Chapter 14
3. The contract settled up 9.25 cents, so a short position loses: 15 5,000 $0.0925 = $6,937.50.
4. The contract settled up 10 points, so a short position loses: 30 $100,000 (10/32)% = $9,375.00.
6. F4 = $71.18(1 + .05
1
Itisamathematicalfactthatfiftypercentofalldoctorsgraduateinthe
bottomhalfoftheirclass.
AuthorUnknown
ECON 410
MathReviewAlgebra,Derivatives,andPartials(oh
my)
Class 2 Math Review
2
Class 2 Math Review
3
Class 2 Math Review
4
Class 2 Math Review
5
Class
FIN 330
Homework Solutions
Chapter 10
3. P = $47(PVIFA3.7%,26) + $1,000(PVIF3.7%,26) = $1,165.18
5. P = $902.30 = $40(PVIFAR%,32) + $1,000(PVIFR%,32) ; R = 4.588%, YTM = 9.18%
14. Assuming a $1,000 face value, the current price of the bond is $1,000 / (1.
Do what you love, but be damned sure its profitable. If you do work you love, but it
doesnt generate income, your business will fail. If you do work you hate, but it
generates income, your health will failand your business along with it. If you cant do
wh
Were building something hereand all the pieces matter.
Lester Freamon
ECON 410
UtilityFunctions
Class 6 - Utility Functions (Cont.)
2
Class 6 - Utility Functions
3
Utility Function
A Utility Function is a mathematical function that
re pre s e nts an indi
Many a secret that cannot be pried out by curiosity can be drawn
out by indifference. Sydney J . Harris
ECON 410
Preferences
Class 5 Indifference Curves/Maps
2
Indifference Curve:
An indiffe re nce curve is the graphical set of all
bundles of goods that a
If you put a baseball and other toys in front of a baby, hell pick up
a baseball in preference to the others. -Tris Speaker
ECON 410
Preferences&IndifferenceCurves
S elf-Clicker eRecitation Question (2 pts): Without using
calculators, find df/dx where
f (
Optimizationhindersevolution.AlanJ.Perlis
S elf-Clicker Question (P): Is your laptop on?
1.
Yes
0%
2.
No
0%
ECON 410
MathReviewOptimization&Preferences
Optimizationhindersevolution.AlanJ.Perlis
ECON 410
MathReviewOptimization&Preferences
Class 3 Optimizat
1
An economist is a man who states the obvious in terms of the
incomprehensible.
-Alfred Knopf
ECON 410
Dr. Jeremy Petranka (Dr. J)
Class 1 - Introductions
2
Question: How many times do the players wearing white pass
the basketball to each other? A dribbl
UNCW
FIN 330 Principles of Investing
Spring 2011
Instructor:
Dr. Clay M. Moffett
Office Hours:
MTWHF: 10:00AM 11:00AM (or by appointment)
Room 220-O Cameron Hall
910.962.3513 (Office)
910.685.4206 (Cell)
E-mail: [email protected]
Web site: www.claymoffett
FIN 330
Homework Solutions
Chapter 7
1. To find the cumulative abnormal returns, we chart the abnormal returns for the days preceding and
following the announcement. The abnormal return is calculated by subtracting the market return from
the stocks return