Adam Deeb
2-28-2011
When I was 7 years old my mom took me to North Carolina to visit family. My
grandma, wanting to spend time with me asked me to come help her with her yard. At
that age I was always
Skelton
Eco 4368
Homework 3
1. Suppose you short-sell 100 shares of a stock selling at $200 a share.
A. What is the maximum possible loss?
B. What happens to your maximum possible loss if you simultan
ECO 5341 Strategic Behavior
Southern Methodist University, Spring 2013
Instructor: Bo Chen
Homework Assignment 1
Due in class on 02/05/2013
Instructions. This assignment will be due on Tuesday, Februa
Skelton
Eco 4378
Homework 4
1.
Assume the S&P500 index is at 1,200, has a dividend yield of 2%, and the risk-free
interest rate is 1%. What should be the price of a futures contract with a one-year
ma
Skelton
Eco 4378
Homework 5
1. The expected rate of return on portfolio A is 11% with a beta of 0.8 and standard
deviation of 10%. Portfolio B has an expected rate of return of 14%, a beta of 1.5 and
Skelton
Eco 4378
Homework 1
1.
Assume a firm will pay a year-end dividend of $4, and dividends are expected to
grow 4% a year after that. Assume the risk-free rate is 4%, the expected return on a
mark
Chapter 4
Investment companies: financial institution that invests the funds of investors in
securities or other assets; investor has a claim on the company in proportion with
the amount invested.
Pur
Skelton
Eco 4378
Homework 3
1.
A put option on a stock with a current price of $33 has a strike price of $35. The
premium of the option is $2.25 and has three months to expiration. According to putcal
Unit 15
Mycelium- is the vegetative part of a fungus, consisting of a mass of branching, threadlike hyphae. It is through the mycelium that a fungus absorbs nutrients from its
environment. (Mushroom,
Skelton
Eco 4368
Homework 3
1. Suppose you short-sell 100 shares of a stock selling at $200 a share.
A. What is the maximum possible loss?
B. What happens to your maximum possible loss if you simultan
Recommendations
The Recommendations Report lists the recommended daily nutrient intake for a person based on the information
entered. Often referred to as the DRI (Dietary Reference Intake).
Profile I
Nutrition Facts
Formats the analysis as a Nutrition Facts label.
Profile Info
Personal: Untitled Male 20 yrs 6 ft 2 in 178 lb
Day(s): Day 1 (Breakfast, Lunch, Dinner, Snack)
Activity Level: Very Activ
Econ 301 Answer key #2 Multiple Choice 1) A 2) A 3) D 4) B Calculation: 5) I) BC: 6 M + 6 S = 30 Since 6*4+6*1=30, 4 movies and 1 box of soda satisfies her weekly budget constraint. MU M = TU 4 - TU 3
MyPlate
The MyPlate Food Guide report displays graphically how close the foodlist compares to the lastest USDA Dietary
Guidelines (see ChooseMyPlate.gov for more info).
Profile Info
Personal: Untitled
Skelton
Eco 4368
Homework 2
1. Suppose short-term municipal bonds pay a yield of 4%, while comparable taxable
bonds pay 5%. Which gives you the higher after-tax yield for the following tax
brackets:
A
Skelton
Eco 4378
Homework 3
1.
A put option on a stock with a current price of $33 has a strike price of $35. The
premium of the option is $2.25 and has three months to expiration. According to putcal
January 28, 2013
Investment process: how to set up a portfolio
Asset Allocation: how to divide portfolio across broad asset classes (cash vs.
bonds vs. equity).
Security Selection: Choice of specific
Skelton
Eco 4368
Homework 3
1. Suppose you short-sell 100 shares of a stock selling at $200 a share.
A. What is the maximum possible loss?
B. What happens to your maximum possible loss if you simultan
Chapter 3
How Firms Issue Securities
1. Privately held firms: under 500 investors. Generally sold via:
a. Private placement: shares sold directly to small group of investors,
usually wealthy and/ or i
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Eco 4368
HW 3 Answers
1.
Theoretically, potential losses are unbounded/infinite, growing directly with
increases in the price of IBM. In practice, the maximum loss would be based on
your colla
Skelton
Eco 4368
Homework 4
1. The composition of a mutual fund portfolio is as follows:
Stock
Shares
A
200,000
B
300,000
C
400,000
D
600,000
Price
$35
$40
$20
$25
The fund has not borrowed any funds
Skelton
Eco 4378
Homework 3 Answers
1. Using put-call parity: Put = C S0 + PV(X) + PV(Dividends)
= $2.25 $33 + $35/(1 + .04)3/12 + 0 = $3.91
2.
A.
When ST = $130, then P = 0
When ST = $80, then P = $3
Chapter 5
Risk Premium and Risk Aversion:
Risk-free rate: rate of return earned with certainty
Risk Premium: Return over and above the risk-free rate. Extra return (expected) from
taking on risk. Can
Chapter 6: Efficient Diversification
To a point, investing in more securities reduces risk
Risk that cant be diversified: market risk, systematic risk, non-diversifiable risk, and any
other market-wid
MyFoodList Report
The MyFoodList Report shows the foods you have entered and their calories.
Profile Info
Personal: Untitled Male 20 yrs 6 ft 2 in 178 lb
Day(s): Day 1 (Breakfast, Lunch, Dinner, Snack
Skelton
Eco 4368
HW 2 Answers
1.
Remember: After-tax yield = Rate on the taxable bond * (1 Tax rate)
A. Taxable bond (duh)
B. Taxable. After tax yield = 4.5%
C. Neither; both have 4% after-tax yield.
Actual Intakes -vs- Recommended Intakes
The actual intakes -vs- recommended intakes report displays the amount of nutrients consumed as they
compare to your dietary intake recommendations in a bar gra