A paper mill produces two types of paper: paper for books and paper for magazines. The profit contributions are $214 for each ton of paper for books and $261 for each ton of paper for magazines. Each ton of paper for books requires two tons of spruce and four tons of fir; each ton of paper for magazines requires two tons of spruce and two tons of fir. The company must supply at least 25,000 tons of paper for books and at least 20,000 tons of paper for magazines a year. The yearly availability of materials is 278,000 tons of spruce and 420,000 tons of fir. The chief executive officer imposes an additional restriction that the amount of paper manufactured for magazines should be no more than a half of the amount of paper manufactured for books. Determine the amount of paper (in tons) for magazines and the amount of paper (in tons) books to maximize the total profit.

The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Consider the following information on stocks a, b, c and their returns (in decimals) in each state: state prob. of state a b c boom 20% 0.27 0.22 0.16 good 45% 0.16 0.09 0.07 poor 25% 0.03 0 0.03 bust 10% -0.08 -0.04 -0.02 if your portfolio is invested 25% in a, 40% in b, and 35% in c, what is the standard deviation of the portfolio in percent? answer to two decimals, carry intermediate calcs. to at least four decimals.