Harmon School District accounts for all activities in its General Fund. The school district receives the following grants: 1. Grant A: Harmon seeks to be reimbursed by the state for costs incurred in teaching students with disabilities. To receive reimbursement, the district must submit quarterly reports showing its expenditures, which it has done. Its expenditures for the quarter September through November 2019 were $450,000. Prepare separate journal entries to record its expenditures under the grant and its billing to the state. 2. Grant B: Harmon receives a grant in the amount of $100,000 from the federal government for the sole purpose of teaching students with disabilities. The grant contains no time limits and may be used any time after the school district receives the grant. Prepare three separate journal entries to record receipt of the $100,000 grant, expenditure of $65,000 on the grant during school year 2019, and year-end classification of fund balance.

Consider the following two stocks, a and b. stock a has an expected return of 10%, 10% standard deviation, and a beta of 1.20. stock b has an expected return of 14%, 25% standard deviation, and a beta of 1.80. the expected market rate of return is 9% and the risk-free rate is 5%. security would be considered a good buy if we include the stock in a well diversified a portfolio because a. b, it offers better alpha b. a, it offers better alpha c. a, it offers better sharpe ratio d. b, it offers better sharpe ratio

Maldonia has a comparative advantage in the production of , while lamponia has a comparative advantage in the production of . suppose that maldonia and lamponia specialize in the production of the goods in which each has a comparative advantage. after specialization, the two countries can produce a total of million pounds of lemons and million pounds of coffee.

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.