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Calculating Portfolio Betas You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15 percent in stock S, and 40 percent in stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?
A consumer spend income 5000 on food and cloth draw the budget line and identify intercept food price is100 and cloth price is 250
Suppose the Ricardian Equivalence proposition holds. What does this imply about the ability of fiscal policy to affect GDP? Explain.
Explain the macroeconomic effects of a tax cut according to the Ricardian Equivalence proposition. Include in your answer the IS-LM graph that shows the effects of this tax cut.
(a) An open economy with flexible exchange rates. While UIP stand for the uncovered interest parity condition.
(1) In an IS-LM-UIP diagram, show the effect of a decrease in foreign output, Y*, on domestic output. Explain.
(6 Marks)
(2) Discuss the effects of foreign fiscal policy expansion on foreign output, Y*, and on the foreign interest rate, i*?
What are the determinants of foreign exchange rate? Show this graphically [15 marks]
Find consumer surplus. Given that pd=(6-Q) ², ps=14+Q
Mention two opportunity costs for building a dam on a river
8.
Why does specialization in production with trade
proceed only up to the point where relative commodity prices in the two nations are equalized?
How is the equilibrium-relative commodity price
with trade determined?
Dec. 1 Mr. John transferred cash from his personal account to the business 150,000.
1 Paid five months’ rent in advance, 30,000
1 Paid annual Insurance premium of 7,200
11 Purchased a truck for 110,000 by paying 60,000 Cash and giving a notes payable for the difference.
12 Purchased equipment on account, 11,000
13 Purchased supplies on account 2400.
14 Paid insurance premiums of 8100
15 Received cash for services completed 36,000.
18 Paid salaries of 9000.
21 Paid its liabilities for the purchase of equipment made on December 12
24 Provided Service on account, 52,000
27 Paid utilities expense 12,500.
27 Paid miscellaneous expenses 1,200.
28 Received cash from customers on account 24,000
30 Paid salaries to employees 5,000
30. The owner withdrew 2,000 for
Required: Assume beginning balances for selected accounts: Cash, 22,000 ; Equipment, 10,000; Supplies,1,000; Accounts Receivable, 11,000 Prepare a trial balance and journalize the adjustments and post the entries to the ledger
