1. In a graph illustrating the AD-AS model, where does short-run equilibrium occur, and where does long-run equilibrium occur? At what level of output does long-run equilibrium occur?

2. When the economy is in a short-run equilibrium, with output greater than potential GDP what will happen to the short-run aggregate supply curve? Briefly explain why this happens.

Calculate the present value of these cash flows : With an interest rate of 6 percent, the present value of a security that pays $1,100 next year and $1,460 four years from now, calculate the present value of these cash flows? |

Describe the direct and indirect consequences : Describe the steps necessary to ensure that verbal or written communications from each of the suspects are eligible as testimonial evidence in a criminal proceeding.Describe the direct and indirect consequences if the testimonial evidence is deemed.. |

Assume taxes are automatically deducted from paycheck : Vincent Lecavlier, a Montreal native, played for the Tampa Bay Lightning. He had a ten year contract worth $100 million ($10 million per year). He dreamed of playing for the Montreal Canadians and 4 years into his contract with Tampa Bay, he was trad.. |

Derivatives and risk management : Assume that your team has recently been appointed as the “Financial Risk Management” team of your organisation. For this purpose, select a company of your choice (companies will be allocated to each group in the first class) and assess how well the c.. |

At what level of output does long run equilibrium occur : In a graph illustrating the AD-AS model, where does short-run equilibrium occur, and where does long-run equilibrium occur? At what level of output does long-run equilibrium occur? |

Show the effects on the price level and the output level : If there is a decrease in aggregate demand, use an AD-AS graph to show the effects on the price level and the output level in the short run and in the long run. |

Can the economy be in a long run macroeconomic equilibrium : Can the economy be in a long-run macroeconomic equilibrium without being in a short-run macroeconomic equilibrium? |

Describe a relevant theory of change management : Theory of the five disciplines as a method of change: Describe a relevant theory of change management and two of the five disciplines. |

What is the appropiate direction of the hedge : If BSB decides to hedge its market risk exposure in each phase of the minority lending project, what is the appropiate direction of the hedge, for each component of project? how will the edge position immunize the bank from interest rate fluctuation? |

## Coupon bond pays interest annuallyA 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond (give me a percentage change) if the market yield rises to 6% from the current yield of 4.5%? |

## Capital structure weight of equity on market value basisFiler Manufacturing has 11.1 million shares of common stock outstanding. The current share price is $55, and the book value per share is $5. Filer Manufacturing also has two bond issues outstanding. What is Filer's capital structure weight of equity .. |

## Financed entirely with debt and common equityWarsaw Production Company had $34,000,000 in sales last year. The company's net income was $800,000, its total assets turnover was 5.0, and the company's ROE was 14 percent. The company is financed entirely with debt and common equity. What is the co.. |

## What is your total profit or loss on all of your transactionYou sold a put contract on EDF stock at an option price of $.50. The option had an exercise price of $21. The option was exercised. Today, EDF stock is selling for $20 a share. What is your total profit or loss on all of your transactions related to .. |

## Calculate the expected liquidity premium yields for pathCalculate the expected liquidity premium yields for a (1,5,2) path. Calculate the expectations yields for a (3,4,1) path. Calculate the real world yield for a (3,5) path. Calculate the expected pure expectations yield for a 3-year note purchased at t.. |

## Assuming the market is in equilibriumCrisp Cookware's common stock is expected to pay a dividend of $2 a share at the end of this year (D1 = $2.00); its beta is 1.20; the risk-free rate is 5%; and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, a.. |

## What was the capital gains yield and dividend yieldSuppose a stock had an initial price of $96 per share, paid a dividend of $2.70 per share during the year, and had an ending share price of $77.50. Compute the percentage total return. What was the dividend yield? What was the capital gains yield? |

## Briefly explain the ideas behind technical analysisBriefly explain the ideas behind technical analysis. In your opinion, does technical analysis have any validity in the investment world? |

## Futures contract underlying the option maturesWhat is the delta of a short position in 4,000 European call options on gold futures? The options mature in eight months, and the futures contract underlying the option matures in nine months. The current nine-month futures price is $10 per ounce, th.. |

## Why participants in the stock market monitor the vix indexExplain why participants in the stock market monitor the VIX index. What does a decline in the VIX index imply about a change in expected volatility by market participants? |

## Compute the average hedge ratioAssuming the data in the following table for corporate bonds, Assuming the data in the following table for corporate bonds, compute the average hedge ratio (duration multiplier) at the average spread level for the three credit ratings (M1, M2, and M3.. |

## Calculate the expected return on portfolio after purchaseYour portfolio is diversified. It has an expected return of 11.0% and a beta of 1.10. You want to add 300 shares of Kraft Foods Inc at $40 a share to your portfolio. Kraft Foods Inc has an expected return of 9.0% and a beta of 0.80. The total value o.. |

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