A. Draw the indifference curve in the expected return-standard deviation plane corresponding to a utility level of 0.05 for an investor with a risk aversion coefficient of 3. (Hint: use the following standard deviations: 0, 0.05, 0.1, 0.15,0.2, 0.25. For each one, find the expected rates of return providing a utility level of 0.05).

b. Draw the indifference curve corresponding to a utility level of 0.05 for an investor with risk aversion coefficient A = 4. Comparing your answer to a, what do you conclude?

c. Draw an indifference curve for a risk-neutral investor providing utility level 0.05.

d. Draw the indifference curve for a utility level of 0.05 for a risk lover.

Use the information below to answer the following question. the boxwood company sells blankets for $60 each. the following was taken from the inventory records during may. the company had no beginning inventory on may 1. date blankets units cost may 3 purchase 5 $20 10 sale 3 17 purchase 10 $24 20 sale 6 23 sale 3 30 purchase 10 $30 assuming that the company uses the perpetual inventory system, determine the gross profit for the month of may using the lifo cost method.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false