An investor can invest in 2 assets: a government T-bill with a certain return of 0.03, and the index of all stocks in the S&P 500 (an asset called SPY). The SPY asset has the following properties: E(r) = 0.08; volatility = 0.2 What is the Sharpe ratio of the SPY asset? 1.33 Let’s say the investor sets up their portfolio such that 40% is invested in SPY, and 60% is invested in the risk-free government debt. What is the expected return of the portfolio? 5 % (answer in units of %) What is the volatility of a portfolio? 8 % (answer in units of %) What is the Sharpe ratio of the portfolio? 25 Let’s say the investor had a utility function described by U = E(r) - 1/2*A*V^2, where A is the investor’s risk-aversion coefficient, and V is the volatility of the investor’s portfolio returns. If A = 3, would the investor prefer a) the initial setup with 40% invested in SPY, or b) 60% invested in SPY, and 40% invested in the risk-free asset instead? (please write one of the following: a b ) b

Electronics assembly inc. is a contract manufacturer that assembles consumer electronics for a number of companies. currently, the operations manager is assessing the capacity requirements as input into a bid for a job to assemble cell phones for a major global company. the company would assemble three models of cell phones in the same assembly cell. setup time between the phones is negligible. electronics assembly inc. operates two 8-hour shifts for 275 days per year. cell phone demand forecast (phones/year) processing time (minutes/phone) mars 47,000 19.8 saturn 35,000 20.7 neptune 7,500 16.2 a. calculate total capacity required by line. b. determine the total operating time available. c. calculate the total number of assembly cells. (round up your answer to the next whole number.)

Carlos hears juan and rita’s complaints about the new employees with whom they have to work with, as well as their threats to quit the company. if carlos were to reassign juan and rita to new, unique roles and separate them from the ronny and bill, it would signal that carlos has moved into the stage of managing resistance.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept, the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year. to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51