Business, 05.10.2019 03:20 krystinayagel013
Every morning, leslie drinks coffee (c) or tea (t) with her waffles. for leslie, 1 cup ofcoffee and 1 cup of tea are that same thing, and thus her preferences can be represented byu(c, t) =c+t. a cup of coffee costs $3, and a cup of tea costs $2; leslie has $5. forthe sake of consistency, let coffee be our x-axis good (i. e., good 1), and let tea be our y-axisgood (i. e., good ) what is leslie’s best feasible bundle? (b) graphically depict the best feasible bundle (make sure to label your axes, include a b. c.,and an indifference curve() holding constant leslie’s income and the price of tea, what will be the new optimalbundle if coffee is now half off (per ) explain how the optimal consumption bundle will change if the price of coffee is thesame as the price of tea?
Answers: 2
Business, 22.06.2019 05:10, russboys3
The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?
Answers: 1
Business, 22.06.2019 12:20, KindaSmartPersonn
Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?
Answers: 3
Every morning, leslie drinks coffee (c) or tea (t) with her waffles. for leslie, 1 cup ofcoffee and...
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