### Discuss the consistency of mutual fund performance

Assignment Help Macroeconomics
##### Reference no: EM1334914

A. In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?

b. What is the bond equivalent yield of a T-Bill that is selling for \$9,453 and has 173 days remaining until maturity?

2) You purchased 100 shares of ABC common stock on margin at \$70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

3) Discuss the consistency of mutual fund performance results, as studied by Goetzmann and lbbotson (1994) and Malkiel (1995).

4) You have been given this probability distribution for the holding period return for XYZ stock:

State of the Economy Probability HPR

Boom .30 18%
Normal growth .50 12%
Recession .20 -5%

### Write a Review

#### Determine the price elasticity of demand for a resource

Determine the price elasticity of demand for a resource. Why is it important and what is it used for.

#### Elucidate are the characteristics of the market for lemons

Elucidate are the characteristics of the market for lemons.

#### Developing nations are often concerned that their terms

Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.

#### Difference among inflationary gap also deflationary gap

Discuss the difference among inflationary gap also deflationary gap.

#### Compute the linear function equation if drink consumption

Compute the linear function equation if drink consumption is a linear function of the number of students.

#### Explain how would you evaluate this forecast for your firm

Explain how would you evaluate this forecast for your firm.

#### Demand curve elastic or inelastic at these points

Compute point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points.

#### A construction manager earns every year working

A construction manager earns \$70,000 every year working for a regional home builder decided to open his own home building company.

#### Price war in perfect competition

A recent McKinsey report concluded that 'If a price war occurs in a specific market-Critically examine this statement.

#### Elucidate what is the residual demand elasticity facing

Elucidate what is the residual demand elasticity facing one firm at the competitive equilibrium.

#### Illustrate what is the economic growth rate equal to

Illustrate what is the economic growth rate equal to. Write down your math calculations. Show to 6 decimal points.

#### The industry has a constant growth rate

The rate of return on common stock (Ke) is 13 percent. The industry has a constant growth rate (g) of 7 percent. Calculate the current price of the stock.