What is the standard deviation of a portfolio which is comprised of $8,400 invested in stock S and $3,600 in stock T? Returns if State Occurs State of Economy Probability of State of Stock S Stock T Economy Boom 5% 16% 3% Normal 80% 9% 7% Recession 15% -30% 10% 1.36 points a. If you borrow $2,300 and agree to repay the loan in six equal annual payments at an interest rate of 11%, what will your payment be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Amount of payment b. What will your payment be if you make the first payment on the loan immediately instead of at the end of the first year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Amount of payment (3) Consider an exchange economy with two consumers. Consumer A has utility function UA (x1,x2)=x1 + x2 and endowment w = (60, 10). Consumer B has utility function UB(x1, x2)=x1x2 and endowment B = (20,30). (a) Draw wn Edgeworth box with the initial endowment and the correspoing indifference curves through the endowment for consumer A and consumer B. (b) Note that at any Pareto efficient allocation where both consumers get strictly positive amounts of each good, their MRS must be the same. Use this observation to construct the contract curve. Are there Pareto effcient point where consumer A does not get a strictly positive allocation of both goods.? Draw the contract curve in the Edgeworth box. (c) Find the competitive equilibrium prices and competitive allocation. (d) Now consider an economy with 1000 consumers identical to consumer A and 1000 con- sumers identical to consumer B. That is each consumer A has the same initial endowment and utility functon, and similarly, each consumer B has the same endowment and utility function. Find a competitive equilibrium of the economy with 2000 consumers. (3) Consider an exchange economy with two consumers. Consumer A has utility function UA (x1, x2)=x1 + x2 and endowment w = (60, 10). Consumer B has utility function UB(x1, x2)=x1x2 and endowment B = (20, 30). (a) Draw wn Edgeworth box with the initial endowment and the correspoing indifference curves through the endowment for consumer A and consumer B. (b) Note that at any Pareto efficient allocation where both consumers get strictly positive amounts of each good, their MRS must be the same. Use this observation to construct the contract curve. Are there Pareto effcient point where consumer A does not get a strictly positive allocation of both goods.? Draw the contract curve in the Edgeworth box. (c) Find the competitive equilibrium prices and competitive allocation. (d) Now consider an economy with 1000 consumers identical to consumer A and 1000 con- sumers identical to consumer B. That is each consumer A has the same initial endowment and utility functon, and similarly, each consumer B has the same endowment and utility function. Find a competitive equilibrium of the economy with 2000 consumers. Assumption (Under simple linear regression model) I. X I. X1, Xn are nonrandom X, are not all equal TE(u=0, ECU) =0,..., E(un) = 0 I. var(u)-Var(U2)= var(3) In other words, var(u1x) does not depend on X (Homes Kadasticly) V. U1, U2,.. Un are mutually indeperant Provide a mathematical proof for the equation E(62)=6 using assumptions I.-V. = n-2 n Katharine Stanley is the owner of Action Bikes, a company that produces high quality cross-country bicycles. Action Bikes participates in a supply chain that consists of supe has purchased titanium from suppliers in the supply chain. Action Bikes uses titanium for the bicycle frames because it is stronger and lighter than other metals and therefor a recent graduate from State University, as purchasing manager. Michael believed that he could reduce costs if he purchased titanium from an online marketplace at a lower Click the icon to view the standard and actual information.) Read the requirements Requirement 1. Compute the direct materials price and efficiency variances. Let's begin by calculating the cost for the actual input at the budgeted price. Actual input x Budgeted price Direct materials (purchases) Direct materials (usage) 4,700 4,200 x $ 18 Cost = $ 84,600 x $ 18 = $ 75,600 Next determine the formula and calculate the cost for the flexible budget. Direct materials Budgeted input for actual output x 3,200 Budgeted price = Flexible budget cost 18 $ 57,600 Now compute the price and efficiency variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Direct materials Price variances Efficiency variances Choose from any list or enter any number in the input fields and then click Check Answer. 6 parts remaining Type here to search T K Clear All POLL any that produces high quality cross-country bicycles. Action Bikes participates in a supply chain that consists of suppliers, manufacturers, di ain. Action Bikes uses titanium for the bicycle frames because it is stronger and lighter than other metals and therefore increases the quality c manager, Michael believed that he could reduce costs if he purchased titanium from an online marketplace at a lower price. rmation.) nd efficiency variances. Requirements - X at the budgeted price. 1. Compute the direct materials price and efficiency variances. What factors can explain the variances identified in requirement 1? Could any other variances be affected? 3. Was switching suppliers a good idea for Action Bikes? Explain why or why 2. x Budgeted price x $ 18 x $ 18 the flexible budget. Etual output x Budg direct materials. Label each vari Efficiency variances 4. 5. 6. not. Should Michael Sesnie's performance evaluation be based solely on price variances? Should the production manager's evaluation be based solely on efficiency variances? Why is it important for Katharine Stanley to understand the causes of a variance before she evaluates performance? Other than performance evaluation, what reasons are there for calculating variances? What future problems could result from Action Bikes' decision to buy a lower quality of titanium from the online marketplace? e input fields and then click Check Answer. Print Done Clear All i i Data Table es. e. ice H H Budg leach vari - XX Action Bikes established the following standards based upon the company's experience with their previous suppliers. The standards are as follows: Cost of titanium Titanium used per bicycle $ 18 per pound 8 lbs. Actual results for the first month using the online supplier of titanium are as follows: click Check Answer. Bicycles produced 400 Titanium purchased 4,700 lb for $75,200 Titanium used in production 4,200 lb. Print Done Cloor All