g Assets with random rates of return r1, r2 have expected rates ¯r1 = 1, ¯r2 = 2, variances σ1 2 = 1, σ2 2 = 3 and covariance σ1,2 = 1. Consider portfolios consisting of weights w1 = 1 − α and w2 = α of these assets. a) Find weights, expected rate of return ¯rMVP, and volatility σMVP for the minimum variance portfolio. b) Make a sketch in the σ, r¯ plane of the portfolio curve. Label the asset points (σ1, r¯1), (σ2, r¯2), the minimum variance point (σMVP, r¯MVP), and the efficient frontier. c) An individual with utility function U(y) = 16y−y 2 and with unit initial wealth constructs a portfolio consisting of fractions 1 − α and α of these assets. Find the maximum over α of the expected utility E[U(1 + rp(α))], where rp(α) is the portfolio rate of return. d) Calculate σp, ¯rp for the portfolio corresponding to the maximum expected utility, and show that this portfolio is efficient.

Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya.jan. 3purchased on account 350 widgets for $11 each.b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c.jan. 10purchased on account 625 widgets for $12 each.d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company.e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered.f.jan. 13paid for the purchases made on jan. 3.g.jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h.jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition.i.jan. 25received payment for the sale made on jan. 5.j.jan. 26paid for the purchases made on jan. 10.k.jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?