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QUESTION 2 For the following functions: 0 =-5x2 + 3.5x - 20 0 = 200x2 + 1.3x - 150 0 = 1.5x2 +25x - 250

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QUESTION 2 For the following functions: 0 =-5x2 + 3.5x - 20 0 = 200x2 + 1.3x - 150 0 = 1.5x2 +25x - 250 What are their discriminates? I What is the significance of these discriminates? Complete the square and thereby solve for x for these equations. Please do this by hand AND using the excel solver - see excel instructions below. Use excel to graph these functions. To use the solver: . construct the formula for the equation 0 = -5x2 + 3.5x - 20; in BI SUM (C1: E!), CI = -5*C2^2, D1 - 3.5*C2, E1 - -20, C2 the starting value for x. go to solver under data (you may need to use Add-ins) Set Objective $B$1 To: Value Of: 0, By Changing Variable Cells: C2, Solve. keep trying different starting values of x until you have found all solutions. if you have trouble go to help.QUESTION 1 (a) For the market model characteristic line: Ry = Bo + B1RMt (1) What is its intercept, slope and elasticity? (ii) What does the slope represent? (iii) Why would this model not usually be used to calculate a growth rate? This Model will not usually be used to calculate growth rate because to calculate growth rate the model needs to have the independent variable as t (time). (b) For the capital market line (CML), part of the Capital Asset Pricing Model (CAPM): E(RP) = Bo + BISD(RP) = Rf + [E(RM) - R.] SD(RM ) SD(RP) 1) What is its intercept, slope and elasticity? (ii) What does the intercept represent? (iii) What does the slope represent

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