For Problems 27–29, download the Spreadsheet of Table 5.3 : Rates of return, 1926–2006, from www. mhhe. com/bkm.
27. Calculate the same subperiod means and standard deviations for small stocks as
Table 5.5 of the text provides for large stocks.
a. Have small stocks provided better reward-to-volatility ratios than large stocks?
b. Do small stocks show a similar declining trend in standard deviation as Table 5.5
documents for large stocks?
28. Convert the nominal returns on both large and small stocks to real rates. Reproduce
Table 5.5 using real rates instead of excess returns. Compare the results to those of
Table 5.5 .
29. Repeat Problem 28 for small stocks and compare with the results for nominal rates.

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience.type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.120.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

Most states have licensing registration requirements for child care centers and family daycare homes. these usually include minimum standard for operation. which of the following would you most likely find required in a statement of state licensing standards for child care centers?

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.