EC210.
MACROECONOMIC
PRINCIPLES
Week 0: Introduction
Professor Ricardo Reis
London School of Economics
Lent term 2016
1
OUR MEETINGS
The lectures:
Monday and Wednesday, 9:00-10:00, Peacock theatre
We meet weeks 1-5 and 7-11. Important: no lectures
on we
Gianmarco Ottaviano
London School of Economics
EC102 - Economics B MT
Microeconomics
Problem Set 1 (Lectures 1 to 10)
This problem set consists of two long questions, each divided in shorter sub-questions.
Question 1:
Consider consumer between two goods:
FM212/FM492 Principles of Finance Problem Set Solutions
Class 3 7. Little Oil a. A t = 0 each share is worth $20. This value is based on the expected stream of dividends: $1 at t = 1, and increasing by 5% in each subsequent year. Thus, we can find the app
ST102 Outline solutions to Exercise 12 (201314)
1. (a) E
k
P
ai Xi
=
k
P
E(ai Xi ) =
i=1
i=1
k
P
ai E(Xi ).
i=1
(b)
Var
k
X
!
ai Xi
= E
i=1
=
k
X
k
X
i=1
a2i E (Xi E(Xi )2 +
i=1
=
k
X
i=1
ai Xi
k
X
!2
ai E(Xi )
i=1
X
= E
k
X
!2
ai (Xi E(Xi )
i=1
ai aj
FM212 MT2015 Problem Set Solutions
Class 4
10. Price of a bond and yield curve
a. Use the following non-arbitrage relation to calculate the implied forward rates:
(1 + rn ) n = (1 + r1 )(1 + f 2 ).(1 + f n )
Year
1
2
3
4
5
Spot
Rate
0.25%
0.50%
0.75%
1.00
FM212/FM492 Principles of Finance Problem Set Solutions
Class 4 10. Bermuda a. Yes, there is an arbitrage opportunity. An investor who purchased 1% of the equity of Debt Zero (DZ) would pay: 0.01 (3.6 million $86) = $3.096 million This investor's dividend
EC 210 Macroeconomic Principles (Part II)
Lent term, 2016
London School of Economics and Political Science
Professor Ricardo Reis
LECTURES
Instructor: Ricardo Reis
e-mail: [email protected]
Meetings: MW 9:00-10:00, Peacock
O.H.: W 10:00-12:00, 32L.1.27
C
FM212/FM492 Principles of Finance Problem Set Solutions
Class 5 13. Markum a. WACC = (1 / 1.4)(11.3%) + (.4 / 1.4)(5%)(1 .35) = 9% VL = 0.75/(9%-4%)=$15 million NPV = -10 + 15 = $5 million b. Debt-to-Value ratio is (0.4) / (1.4) = 28.57%. Therefore Debt i
THE SHOCKING DEMISE OF MR. THORNDIKE
After the corpse was removed, police inspectors came to dust the bedroom for
fingerprints. Morse knew they would find nothing. He walked down the marble
staircase of Rupert Thorndikes mansion and into the paneled libra
AC100 TEACHING AND LEARNING SUPPORT
Christmas Vacation Essay Follow-Up
Instead of suggested solution notes to the Christmas Vacation Essay, we provide
you with samples of real student essays. All model essays have been awarded
an A grade (although these a
Hand in Problem Set 2 Please hand a paper copy of your work to your class teacher at the beginning of class 8 (week 9). You are still employed at The Home Depot. Recall your previous assignment. The possibility of changing Home Depot's capital structure p
FM212/FM492 Principles of Finance MT Problem Sets
Hand in Problem Set 1 Please hand a paper copy of your work to your class teacher at the beginning of class 4 (week 5). As a new analyst for a brokerage firm, you are anxious to demonstrate the skills you
FM212/FM492 Principles of Finance Problem Set Solutions
Solutions to Class Assignments (Lent Term)
Class 1 1. Timeline: 0 1 2 3
A B a.
10 10
2 1.5
2 2 1.5(1.02) 1.5(1.02)2
NPVA = NPVB = 1.5 r - 0.02
2 r
- 10 , 1.5
setting NPVA = 0 and solving for r: IRRA
FM212/FM492 Principles of Finance MT Problem Sets
Class 9 25. You have estimated spot rates as follows: Year 1 2 3 4 5 Spot Rate 0.25% 0.50% 0.75% 1.00% 1.25% a. What are the forward rates for each period? b. Calculate the PVs of the following government
Class 4 10. In Bermuda there are no corporate income taxes. Consider two Bermuda firms with perfectly correlated earnings. The first is Debt Galore and the second is Debt Zero. Each company is expected to earn $35 million (before interest) in perpetuity.
Addendum to PH101 Notes:
Using the Semantic Tree Method to decide whether a single sentence is (a) a contradiction,
(b) a tautology or (c) a contingent sentence
1. Contradictions The semantic tree method searches systematically for an assignment of
truth
C. (FIRST ORDER) PREDICATE LOGIC
Cl INTRODUCTION: THE NEED FOR A MORE POWERFUL SYSTEM OF
LOGIC
Truth-functional logic is strong enough, as we have seen, to capture a wide
range of intuitively valid inferences - and also, of course, to decide
validity or i
PH 101 LOGICExercises 02
A. Formalise the following sentences in the language of truth functional logic (indicate explicitly
which symbols, p, q, r . stand for which atomic sentences) and construct truth tables for them. (Take
either/or in the inclusive s
AC211 Managerial Accounting
2015-2016
Module 1: Management accounting for decision making
Dr. David Twardowski
Sharing our thinking selection of discussion points made by students in class and
collected by class teachers
Class 3 MT: Colombo Frozen Yogurt
NOTES FOR INTRODUCTION TO LOGIC
BY JOHN WORRALL
CONTENTS:
SECTION A: Truth-Functional Logic
SECTION B: First Order Predicate Logic
A. TRUTH-FUNCTIONAL LOGIC
Al INTRODUCTION: Logic is about reasoning or arguing
'OK, Mr. Press Secretary, give me some answer
Logic Proofs
I suppose it will be helpful to have a look at today's proof again, especially with regards to the general
structure of how to proof an "iff" - condition. So here you go again:
To proof: a is independent of A iff both AUcfw_a and AUcfw_a are
Ph 101 LOGIC Exercises 03.
A. Formalise the following compound sentences, indicating exactly which symbols stand for which
atomic sentences and decide whether each sentence is either (a) a tautology, (b) a contingent
sentence or (c) a contradiction:
1. Ei
AC211 Managerial Accoun1ng
Class 7 (Week 8) MT
HTC
Lukas Lhlein
Department of Accoun6ng
[email protected]
Essay guidelines
Answer the specic ques6on. Please make sure you understand what the ques6on of
SECTION B: TRUTH FUNCTIONAL LOGIC AND INFORMAL REASONING
At the beginning of the course I said that we would be studying the way that we reason both
in systematic disciplines like science, social science or mathematics and in ordinary argument
and reasoni
A3 (k) Truth-functional Equivalence and Interdefinability
We now know how to do everything in truth functional logic that we need to:
decide on validity/invalidity of an inference expressed in that logic; on whether a
particular compound sentence of the l
AC211 Managerial Accounting
Class 2 (Week 3) MT
Plastik
Dr David Twardowski
[email protected]
Question 1
Assume that the demand for dolls is 800,000 units, and the special order has
to be either accepted in full or rejected. Should Plastik accept the
AC211 Managerial Accounting
2015-2016
Module 1: Management accounting for decision making
Dr. David Twardowski
Sharing our thinking selection of discussion points made by students in class and
collected by class teachers
Class 2 MT: Plastik
In the scenari
Issue 1 | January 2014
Focus on
Welcome to the first newsletter for
2014/15 undergraduate offer
holders
Congratulations once again on your offer to
study with us at LSE - we are very much
looking forward to welcoming you to our
student community later thi
Washington University Student Investment Fund and Fin 448 Compilation
Banking Interview Questions
& Selected Answers
Good luck on your upcoming interviews!
I. Financial questions
1. How do you evaluate a company credit wise if we are planning to give the