You have been hired as a portfolio manager for Mr. Franklin Clinton who can always invest money in his own car repossession business, which generates 5% return per period without risk (risk-free), i. e. Rf =5%. An asset C is a risky asset with a 25% expected return, and the standard deviation of this return is 10%. Mr. Clinton told you that he always would like to give up 1.5% expected rate of return for 1 unit of less risk (standard deviation), and vice verse. How many percents of his wealth should he invest in asset C? Again, we assume Mr. Clinton only likes to invest in one risky asset at a time. Another asset D is a risky asset with a rate of return 35%, and the standard deviation is 22%. Mr. Clinton told you that he always would like to give up 1.5% expected rate of return for 1 unit of less risk (standard deviation), and vice verse. How many percents of his wealth should he invest in asset D?

8. agreement and disagreement among economists suppose that bob, an economist from a university in arizona, and cho, an economist from a public television program, are arguing over saving incentives. the following dialogue shows an excerpt from their debate: cho: i think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards. bob: i think a switch from the income tax to a consumption tax would bring growth in living standards. cho: you really think households would change their saving behavior enough in response to this to make a difference? because i don't. the disagreement between these economists is most likely due to . despite their differences, with which proposition are two economists chosen at random most likely to agree? rent ceilings reduce the quantity and quality of available housing. immigrants receive more in government benefits than they contribute in taxes. having a single income tax rate would improve economic performance.

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.

Leticia has worked for 20 years in the public relations department of a large firm and has been the vice-president for the past ten years. it is unlikely she will ever be promoted to the top executive position in her firm even though she has directed several successful projects and is quite capable. her lack of promotion is an illustration of (a) the "glass ceiling" (b) the "glass elevator" (c) the "mommy track" (d) sexual harassment