Stock a has a beta of 0.8, stock b has a beta of 1.0, and stock c has a beta of 1.2. portfolio have 1/3 of its value invested in each of these stocks. each stock has a standard deviation of 25%, and their returns are independent of one another, ie., the correlation coefficients between each pair of stock is zero. assuming the market is in equilibrium, which of the following statements is correct? a. portfolio p's expected return is greater than the expected return on stock c. b. portfolio p's expected return is greater than the expected return on stock bc. portfolio p's expected return is equal to the expected return on stock ad. portfolio p's expected return is less than the expected return on stock be. portfolio p's expected return is equal to the expected return on stock b.

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a. what is the firm’s labor demand function? b. if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c. now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

What is the difference between the contractual interest rate and the market interest rate?

How are credit unions similar to banks