Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 1: Solutions Fall 2009 5B Lehman rs328@columbia.edu
1. (a) The investment rate is 0:51962 = 0:05481 = 5:481%: 9:48038 (b) If bidder FUN had chosen to bid 5.6% instead of 5.0%, the market c
Type equation here.1. Henry is a typical New Yorker. Each month he has $120 to spend on
transportation. The price of a subway ride is $2 and the price of an average cab ride is $10. You may assume that the goods are not perfect complements. Given these pr
Financial Economics
V 3025 Rajiv Sethi Phone: 854 5140 Midterm Exam
Fall 2009 5B Lehman rs328@columbia.edu
1. An investor with $7000 in her account decides to sell short 200 shares of an asset that is currently priced at $40 per share. What does her balan
Homework 10_solution 1. Sheila is endowed with 15 jars of peanut butter (x) and 8 jars of jelly (y) and Bruce is endowed with 9 jars of peanut butter and 10 jars of jelly. Sheila's utility function is US(x,y) = xSyS and Bruce's is UB(x,y) = xB yB. a) What
Financial Economics
V 3025 Rajiv Sethi Phone: 854 5140 Midterm Exam: Solutions
Fall 2009 5B Lehman rs328@columbia.edu
1. An investor with $7000 in her account decides to sell short 200 shares of an asset that is currently priced at $40 per share. What doe
Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 4 Solutions 1. If the current yields for 5 and 10 year US Treasury bonds are 2.16% and 3.35% respectively then (assuming that these yields correspond to zero coupon bonds) their current pr
Homework 2
Intermediate Microeconomics
Solution
1. On Monday the price of a slice of pizza is $2 and a medium coke is $1. At these prices Jane spends her $30 of lunch money to purchase 11 slices of pizza and 8 cokes for her kids. On Friday the prices of p
Homework 6 1. In the game of Life the first choice that a player has to make is whether or not he wants to go to college or if he wants to begin his career immediately. If he begins his career immediately then he will earn $36,000 for sure. If he chooses
SIEO 3600 Introduction to Probability and Statistics Prof. Mariana Olvera-Cravioto
Assignment #2 January 31, 2009 Page 1 of 2
Assignment #2 due February 6th, 2009
1. Use the following table to find the quartiles of the average annual pay in the specified
W1105.002 Principles of Economics Fall 2007
Sample Midterm
This Exam is composed of two sections. Make sure you complete both. Student Name _ Section 1: Multiple Choice Questions Section 2: Definitions Section 3: Exercises Total UNI _ /20 /12 /38 /70
1
Se
SIEO 3600 Introduction to Probability and Statistics Prof. Mariana Olvera-Cravioto
Assignment #1 January 26, 2009 Page 1 of 2
Assignment #1 due January 30th, 2008
1. The following is a sample of prices, rounded to the nearest cent, charged per gallon of s
1. Suppose the production function for aluminum is given by Q = L8 E 8 K 2 where L is the amount of labor hired, E is the amount of energy consumed and K is the amount of capital used. Suppose that the price of energy is 1, the wage rate is 3 and the pric
Introduction to Mathematical Programming IEOR 3606, Prof. Maria Chudnovky
833 Mudd Tu&Th 2:40 3:55
HOMEWORK 4- SOLUTIO 29-09-2008
1. EXERCISE 1 P. 301 P1 Find the dual of the following LP; Primal:
max z = 2 x1 + x 2 s.t - x1 + x 2 1 - x + x2 3 x1 - 2 x 2
Problem 1 Suppose that the domestic supply of oil and domestic demand for oil are given by the following functions: QS = 10 + 3P and QD = 100 - 2P where quantity is measured in millions of barrels and price in dollars per barrel. a) What is the domestic m
Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 5 Solutions Due Date: Monday December 14 1. The payo s are as follows: Buy Shares Buy put options, strike price X1 Write call options, strike price X2 Total ST X1 X1 < ST < X2 100ST 100ST
Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 3: Solutions 1. The published betas are:
IN T C
Fall 2009 5B Lehman rs328@columbia.edu
= 1:17;
MMM
= 0:77;
ED
= 0:28
According to the Capital Asset Pricing Model INTC should have the highe
Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 2: Solutions Due Date: Monday, October 19 1. An investor has access to two risky assets P and Q with the following statistical properties: E(rp ) = 7%; p = 6%; E(rq ) = 8%; q = 8%: The cor
SIEO 3600 Introduction to Probability and Statistics Prof. Mariana Olvera-Cravioto
Assignment #2 Solutions February 7, 2009 Page 1 of 3
Assignment #2 Solutions
1. The frequency table is shown below: Quartile Percentile Value 25% 1 26603 50% 2 30423 3 3258
Homework 1 solutions 1. For each of the following utility functions graph the indifference curves through the bundles (2,3) and (2,4). Find one other bundle on each indifference curve. For each of them find the formula for the Marginal Rate of Substitutio
Homework Assignment 4 1. Martin likes to consume wine(x) and beer (y). His preferences over the two commodities are represented by the following utility function; U ( x, y ) = x 4 y 4
1 3
a) At home, Martin likes to distill his own wine and beer. Assume t
Homework 5 1. On Homework 2 (the Bonus question) you were asked to write the FOC for corner solutions. a) Use those conditions to write the demand functions associated with the utility function u(x,y)= x + y. b) Illustrate in an indifference curve diagram