### What happen if b1 and b2 are perfectly positively correlated

Assignment Help Microeconomics
##### Reference no: EM13871197

Recall that in the discussion of demand for risky assets with more than one risky asset, we asserted that it was possible that an asset could have an expected return less than r and still be demanded and that an asset could have an expected return greater than r and not be demanded at all. (Recall that we are not allowing short-sales of risky assets.) Produce examples to support these claims. (Hints: For the first example, recall that you want negative correlation between the returns on the two risky assets. Imagine that each asset returns either {J = 1 or {J = 5 and that r == 2. You should be able to construct an example from this. The second example is even easier. What happens if B1 and B2 are perfectly positively correlated and B2 always exceeds B1?

#### Define the price elasticity of demand

Assignment: Elasticity and Its Application. Define the price elasticity of demand? What information does it provide? How is it calculated? Define the income elasticity of dema

#### What provisions discuss their policy regarding the sale

What provisions discuss their policy regarding the sale of items that have been banned or recalled by a government agency? What other types of items are identified as illega

#### What is johns weekly economic profit

He has invested \$100,000 of his own money in his business and owes the bank \$100,000. The interest on his bank debt is \$200 a week. If John's accounting profit is \$1,000 p

#### Benefit from lowering their corporate income taxes globally

Companies can benefit from lowering their corporate income taxes globally. Explain how Apple has done this and how some US pharmaceutical companies are using M&A to achieve si

#### Explanation and illustration of supply and demand theory

Explanation and illustration of supply and demand theory, supported by academic references and an application of the theory to the issue of land-fill availability/volumes of

#### What direction will the demand for dunkin donuts

Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?

#### Analyze the execution strategy for the sbu you selected

Analyze the execution strategy for the SBU you selected. What elements affect the execution strategy? How is the execution strategy affected by culture, balanced scorecard, an

#### Example of a positive or a negative externality

In the absence of an agreement between the landowner and his neighbors, is he likely to harvest too much or too little of his timber at any given time? Characterize this a