### Perceived risk on stock is lower

##### Reference no: EM131385507

Assume that you require a 15% return on stocks. Compute the price of a stock that will pay a \$1 dividend next year and is expected to sell for \$20 in a year’s time. If your “perceived risk” on a stock is lower, will your required return be higher or lower than 15%? If your perceived risk is lower, will you want to pay a higher or lower price for the stock compared to your answer on the first part?

#### Lead to corresponding change in demand for tablets

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#### What is the shadow price in period zero

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Suppose stocks A, B and C have the same expected return and standard devieation. The correlations of return are given as follows Corr(A,B)=0.7, Corr(B,C)=-0.3 and Corr(A,C)=0.

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#### Compute its new level of national debt and its new debt-gdp

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Suppose the economy's production function is Y = A(300N – N^2). The marginal product of labor is MPN = A(300 - 2N). Suppose that A = 10. The supply of labor is NS = 0.05w + 0.

#### Ignoring downsizing from automating

The Baldwin's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be?