Suppose you are interested in investing in the stock markets of seven countries— i. e., australia, canada, germany, japan, switzerland, the united kingdom, and the united states—the same seven countries that appear in exhibit 15.9. specifically, you would like to solve for the optimal (tangency) portfolio comprising the above seven stock markets. in solving the optimal portfolio, use the input data (i. e., correlation coefficients, means, and standard deviations) provided in exhibit 15.4. the risk-free interest rate is assumed to be 0.2 percent per month and you can take a short position in any stock market.

what are the optimal weights for each of the seven stock markets? what are the risk and return of the optimal portfolio? this problem can be solved using the mptsolver. xls spreadsheet.

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $

Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.

The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.