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problems, reference materials, practice exams, textbook help and tutor support. 13 CHAPTER REAL OPTIONS True/False Easy: 1 . (13.1) Real options Answer: a EASY Real options exist when managers have the opportunity, after a project has been implemented, to make operating changes in response to changed conditions that modify the project's cash flows. a. True b. False (13.1) Real options Answer: b EASY Real options are options to buy real assets, like stocks, rather than interest-bearing assets, like bonds. a. True b. False (13.1) Real options Answer: a EASY The option to abandon a project is a real option, but a call option on a stock is not a real option. a. True b. False (13.2) Real options Answer: b EASY Real options are most valuable when the underlying source of risk is very low. a. True b. False (13.2) Real options Answer: b EASY Real options affect the size, but not the risk, of a project's expected cash flows. a. True b. False 2 . 3 . 4 . 5 . Chapter 13: Real Options True/False Page 187 Multiple Choice: Conceptual Easy: 6 . (13.2) Investment timing option Answer: e EASY Commodore Corporation is deciding whether to invest in a project today or to postpone the decision until next year. The project has a positive expected NPV, but its cash flows could be less than expected, in which case the NPV could be negative. No competitors are likely to invest in a similar project if Commodore decides to wait. Which of the following statements best describes the issues that Commodore faces when considering this investment timing option? a. The investment timing option does not affect the cash flows and will therefore have no impact on the project's risk. b. The more uncertainty about the future cash flows, the more logical it is for Commodore to go ahead with this project today. c. Since the project has a positive expected NPV today, this means that its expected NPV will be even higher if it chooses to wait a year. d. Since the project has a positive expected NPV today, this means that it should be accepted in order to lock in that NPV. e. Waiting would probably reduce the project's risk. (Comp: 13.1-13.4) Real options Answer: c EASY Which one of the following is an example of a "flexibility" option? a. A company has an option to invest in a project today or to wait a year. b. A company has an option to close down an operation if it turns out to be unprofitable. c. A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change. d. A company invests in a project today to gain knowledge that may enable it to expand into different markets at a later date. e. A company invests in a jet aircraft so that its CEO, who must travel frequently, can arrive for distant meetings feeling less tired than if he had to fly commercial. 7 . Medium (13.2) Real options Answer: d MEDIUM Which of the following will NOT increase the value of a real option? a. b. c. d. e. Lengthening the time in which a real An increase in the volatility of the An increase in the risk-free rate. An increase in the cost of obtaining A decrease in the probability that a market of the project in question. option must be exercised. underlying source of risk. the real option. competitor will enter the Answer: c MEDIUM 10 . (13.2) Real options Which of the following is most CORRECT? a. Real options change the size, but not the risk, of projects' expected cash flows. b. Real options change the risk, but not the size, of projects' expected cash flows. c. Real options are likely to reduce the cost of capital that should be used to discount a project's expected cash flows. d. Very few projects actually have real options. e. Real options are less valuable when there is a lot of uncertainty about the true values future sales and costs. (13.4) Real options Answer: a MEDIUM Lighthouse Corporation uses the NPV method for selecting projects, and it does a reasonably good job of estimating projects' sales and costs. However, it never considers real options that might be associated with projects. Which of the following statements is most likely to describe its
situation? a. Its estimated capital budget is probably too small, because projects' NPVs are often larger when real options are taken into account. b. Its estimated capital budget is probably too large due to its failure to consider abandonment and growth options. c. Failing to consider abandonment and flexibility options probably makes the optimal capital budget too large, but failing to consider growth and timing options probably makes the optimal capital budget too small, so it is unclear what impact not considering real options has on the overall capital budget. d. Failing to consider abandonment and flexibility options probably makes the optimal capital budget too small, but failing to consider growth and timing options probably makes the optimal capital budget too large, so it is unclear what impact not considering real options has on the overall capital budget. e. Real options should not have any effect on the size of the optimal capital budget. 11 . Chapter 13: Real Options Conceptual Questions Page 189 Multiple Choice: Problems Medium: (Problems 12 and 13 must be kept together. 12 Use 13 only if 12 is also used.) . (13.3) Decision tree: expected NPV Answer: d MEDIUM Texas Wildcatters Inc. (TWI) is in the business of finding and developing oil properties, and then selling the successful ones to major oil refining companies. TWI is now considering a new potential field, and its geologists have developed the following data, in thousands of dollars. t = 0. A $400 feasibility study would be conducted at t = 0. The results of this study would determine if the company should commence drilling operations or make no further investment and abandon the project. t = 1. If the feasibility study indicates good potential, the firm would spend $1,000 at t = 1 to drill exploratory wells. The best estimate is that there is an 80% probability that the exploratory wells would indicate good potential and thus that further work would be done, and a 20% probability that the outlook would look bad and the project would be abandoned. t = 2. If the exploratory wells test positive, TWI would go ahead and spend $10,000 to obtain an accurate estimate of the amount of oil in the field at t = 2. The best estimate now is that there is a 60% probability that the results would be very good and a 40% probability that results would be poor and the field would be abandoned. t = 3. If the full drilling program is carried out, there is a 50% probability of finding a lot of oil and receiving a $25,000 cash inflow at t = 3, and a 50% probability of finding less oil and then only receiving a $10,000 inflow. Since the project is considered to be quite risky, a 20% cost of capital is used. What is the project's expected NPV, in thousands of dollars? a. b. c. d. e. $336.15 $373.50 $415.00 $461.11 $507.22 13 . (13.3) Decision tree: SD and CV Answer: c MEDIUM In the previous problem you were asked to find the expected NPV of a project TWI is considering. Use the same data to calculate the project's coefficient of variation. (Hint: Use the expected NPV as found in Problem 12.) a. b. c. d. e. 5.87 6.52 7.25 7.97 8.77 Problems Chapter 13: Real Options Page 190 (Problems 14 and 15 must be kept together. 14 Use 15 only if 14 is also used.) . (13.3) Investment timing option, decision trees Answer: d MEDIUM Nebraska Pharmaceuticals Company (NPC) is considering a project that has an up-front cost at t = 0 of $1,500. (All dollars in this problem are in thousands.) The project's subsequent cash flows are critically dependent on whether a competitor's product is approved by the Food and Drug Administration. If the FDA rejects the competitive product, NPC's product will have high sales and cash flows, but if the competitive product is approved, that will negatively impact NPC. There is a 75% chance that the competitive product will be rejected, in which case NPC's expected cash flows will be $500 at the end of each of the next seven years (t = 1 to 7). There is a 25% chance that the competitor's product will be approved, in which case the expected cash flows will be only $25 at the end of each of the next seven years (t = 1 to 7). NPC will know for sure one year from today whether the competitor's product has been approved. NPC is considering whether to make the investment today or to wait a year to find out about the FDA's
.500. Diplomat.70 2.. Based on the best information available today.328 $561.com is considering a project that has an up-front cost $3 of million and is expected to produce a cash flow of $500. Assuming that the cost of capital remains at 12%.46 2. what is the F200's expected net present value? a. 7). how much will this increase or decrease the project's expected NPV in today's dollars (i. If it waits a year.) Oklahoma Instruments (OI) is considering a project called F-200 that has an up-front cost of $250.3) Growth option--nonalgorithmic Answer: c MEDIUM If Diplomat goes ahead with this project today. if NPC decides to wait.000. in which case the future investment opportunity will have a net present value of -$6 million at t = 5. -$6. e. -$1. together. together. e. in which case the F-200's expected cash flows will be $25. 4.075 $4. 3.947 $898. There is a 50% chance that the F-100 will not become the industry standard. d.205 The problems MUST be kept (The following data apply to Problems 18 and 19. b. Instead.23 2. Assume that the cost of capital is 12%. (13. d. $77. b.53 15 .3) Project NPV-nonalgorithmic Answer: b Based on the above data. b. c. b. e. c. However. (13. The project's subsequent cash flows are critically dependent on whether another of its products. .000 at the end of each of the next 5 years. 6. in which case it will receive an additional $100.000 at the end of each of the next 5 years. it will obtain knowledge that will give rise to additional opportunities 5 years from now (at t = 5). b. if NPC chooses to wait a year before proceeding. What is the estimated net present value of the project. the project's up-front cost at t = 1 will remain at $1.965 EASY 19 . e.945 $10.607 -$875. relative to the NPV if it proceeds today? a.203 $199. c. the subsequent cash flows will be received only for six years (t = 2 . OI has the option to abandon the project. There is a 65% probability that the outlook will be unfavorable.745 Chapter 13: Real Options Problems Page 193 CHAPTER 13 ANSWERS AND SOLUTIONS Page 194 Answers Chapter 13: Real Options 1 2. 5.303 $20.decision. (13. e. By how much will delaying reduce the project's coefficient of variation? (Hint: Use the expected NPV as found in Problem 14. 17 . b. at t = 0). (13.788 EASY 16 . in which case the future investment opportunity will have a net present value of $6 million at t = 5.312. the subsequent cash flows will remain at $500 per year if the competitor's product is rejected and $25 per year if the alternative product is approved.94 $116. .27 Chapter 13: Real Options Problems Page 191 Multi-part: (The following data apply to Problems 16 and 17. Now use the same data to calculate the effect of waiting on the project's risk. F-100. c. There is a 50% chance that the F-100 will become the industry standard.e.678 -$3. it can wait to see what the outlook is.3) Project NPV--nonalgorithmic Answer: a Based on the above information. becomes an industry standard.251 $15. 2.000 at the end of each of the next 5 years. in which case the F-200's expected cash flows will be $110. However. Page 192 Problems Chapter 13: Real Options 18 .34 $105. d. (13.104. $0 $2. c. e.) The problems MUST be kept Diplomat. effect of delay on CV Answer: a MEDIUM In the previous problem you found the benefit from delaying an investment decision.000 at t = 1 but no cash flows after t = 1. the company cannot pursue the future opportunity unless it makes the $3 million investment today.3) Abandonment option--nonalgorithmic Answer: e MEDIUM Now assume that one year from now OI will know if the F-100 has become the industry standard. Assuming that all cash flows are discounted at 10%. d. what is the estimated value of the abandonment option? a.97 3. $1.81 $95.203 $105.999 $321. what is the project's net present value? a.. d.23 $85. The project's cost of capital is 10%.) a.067 $8.607 -$875.004 $45.104. c.com does not have to decide today whether it wants to pursue the additional opportunity. d.3) Timing option. Also assume that after receiving the cash flows at t = 1. after consideration of the potential future opportunity? a. The company can decide at t = 5 whether or not it wants to pursue these additional opportunities.456 -$1. there is a 35% probability that the outlook will be favorable.
94 Delay.711 $3. b.934 $918.871.342. 0. 11.4 = 0.2.8 0.33 32% -400.56 7.20 1.21 -$1. Invest immediately: Prob.500 $0 $0 $0 $0 $0 $0 $0.302 $11. The firm might well reject projects that would be seen to have positive expected NPVs if real options had been considered. .29 $356. and d are all examples of different types of real options.24 0.1) Real options Answer: a EASY Answer: b Answer: a Answer: b Answer: b Answer: e EASY EASY EASY EASY EASY By having the ability to wait and see you reduce the risk of the project. (13. (13.08 NPVi E(NPV) $578 -$1.2) Real options Answer: d MEDIUM (13. and statement e is not really a real option at all.000 $25.142 $741. 13. while statement b is an example of an abandonment option. The greater the uncertainty. c.00 NPV $934. statement c is the correct choice.378.00 **Joint probabilities: Probs 1 and 2 = 0.(13.000 $6.000 Possible NPVs* 6.000 $10.81 Joint Prob.74 -$1.00 $461. 7. either inputs or outputs. Statement c is an example of a flexibility option.000 $0 $0 -$1. 12.4) Real options Answer: c EASY Statements a.3) Decision tree: SD and CV Answer: c MEDIUM The CV = SD/Expected NPV.694 -$861 Squared deviation $33. the firm's capital budget would probably be too small.973. (13. and d are false. 8 9 10 .** Product 24% $1. Prob 4 = 0.153.000 -$10.08 Product: NPV* NPV Prob $616.21 $700.24 0.25 1. Find the potential outcomes' NPVs as the PVs of these cash flows. Statement a is an example of an investment timing option.32.11 NPVi E(NPV) $5.765 $148. Therefore. Typically.829 $2. c. A flexibility option permits the firm to alter operations depending on how conditions change during the life of the project.3) Timing option. Prob.059 $2.00 20% Expected NPV = *Here are the cash flows of the four potential outcomes. Statements c and d are not necessarily true.03 $462. (13.74 NPV-3 = -$400 -$1. Therefore.289.390.02 $ 0.8 0.289.2) Real options (13.2) Investment timing option (13.81 -$2. can be changed.2) Real options (13.000 -$2. (13.008. Therefore.709 $1. then invest in period 1 if the outlook is good: 0 75% Good 25% Bad 1 -$1.951.1) Real options (13.133. Prob 3 = 0.02 $105.5 = 0.74 24% -1.81 NPV-2 = -$400 -$1.00 Expected NPV if Wait: 2 $500 3 $500 4 $500 5 $500 6 $500 7 $500 Increase in expected NPV from waiting: NPV Wait NPV Go Now = *The NPV under the delay option occurs one year later.509.000 -$10.78 -$394. so it must be discounted back to t = 0 at the cost of capital to make the NPVs comparable. the correct choice is statement e.500 25% Bad $25 2 $500 $25 3 $500 $25 4 $500 $25 5 $500 $25 6 $500 7 $500 Product: NPV* NPV Prob $934.054 Variance Standard deviation CV .390. b. or both.289. the correct choice is statement a.75 0. statement d is an example of a growth option.512 Variance Standard deviation CV Squared dev.3) Decision tree: expected NPV Answer: d MEDIUM Cost of capital: 20% Invest this period: 0 80% -$400 20% Invest this period: 1 -$1. (Comp: 13.33 NPV-4 = $400 $0 $0 $0 -$400. .00 NPV $6.852 -$1.6 0.32 0.1) Real options (13.228 $3.66 $25 $25 -$1.25 14.000 $10. times probability $8.56 -$573.24.3) Investment timing option.378.67 -$80. Since statements a. effect of delay on CV Answer: a MEDIUM The CV = SD / Expected NPV.233.000 50% $0 CF this period: 3 $25.00 $461.172.1-13.11 -2. the more value there is in waiting for additional information before going on with a project. statement a is false.33 -$400. statement b is false.390. decision trees Answer: d MEDIUM Cost of capital: 10% Invest immediately: 0 1 75% Good $500 -$1. discounted at the 20% cost of capital: 0 1 2 3 NPV NPV-1 = -$400 -$1.4) Real options (13. 0.00 $462.734 Squared deviation $334.000 40% $0 Invest this period: 2 50% 60% -$10. Students can use the Expected NPV as found in Problem 12. Therefore.57 Expected NPV if Go Now: $356.1) Real options Answer: b MEDIUM (13.787 $8.233. By waiting to do a project you may lose strategic advantages associated with being the first competitor to enter a new line of business.2) Real options Answer: c MEDIUM Answer: a MEDIUM By failing to consider real options. 15.233.29 -$344. which may alter the cash flows. The figure shown in the delay tree is after discounting. Students can use the Expected NPV as found in Problem 14.
Practice Exams and more.000.000 25.789 $53.5)($110. CF1-5 = 67. 2010) .745 Find millions of documents on Course Hero .5 0.263 .00 $462.935 = $199. 16.000 25.463 Variance Standard deviation CV Reduction in the CV due to waiting Note that the problem implicitly assumes that the project is riskless if it is delayed. the NPV at t = 5 is calculated as 0.000 3 | 500. 0 1 | 110. then invest in period 1 if the outlook is good: Prob.3) Project NPV--nonalgorithmic Answer: a EASY Step 1: Find the project's expected cash flows in Years 1 through 5: (0.067 (-$6.500. Therefore.303. The appropriate cost of capital is often lowered by the existence of real options.5 -250.5 NPV $146.000 25.000) + 0.3) Growth option Answer: c MEDIUM 0 1 r = 10% | | -3.Study Guides.303.881 Prob NPV $73.000 NPV = 1.941 Answer: e MEDIUM 0. Step 2: Find the project's NPV by entering the following data inputs in the financial calculator: CF0 = -250.25 1.65($0) = $2.5 NPV $146.000 (35%) NPV = -6.. Below is a small sample set of documents: INART 115 NY Film >> INART >> 115 (Spring.104.000 2 | 110.000 0.607 +1. Course Hero has millions of course specific materials providing students with the best way to expand their education.Squared dev. 19.303.34 2. However.000.000.000).000.000 2 | 110.000. I/YR = 10.000 4 | 500..79.000 Prob 0.263 .067 Value of Abandonment = $4. 17. This is. Step 3: Find the NPV of the entire project considering its future opportunities: -$1.100.393 Prob NPV $73.000 5 | 110.013 $1. 18.3) Project NPV--nonalgorithmic Answer: b EASY Find the project's NPV using a financial calculator and entering the following data inputs: CF0 = -3.196 0.678 Abandonment: Yr.58 2.366 $71.000 Prob 0.678) = $10.000.35($6.000 3 | 110.5 E(NPV) = $ 4. of course.000.685 $1.000 NPV = +6.000 125.328.607 + $1.75 0.000.000 4 | 110.000. (13.001.edu >> MATH >> CS715 (Spring.935. (13.02 NPVi E(NPV) $154 $462 Squared deviation $23. I/YR = 12. so we need to discount this NPV to find the NPV of the additional projects today.000 5 | 500. FV = 2.000) = $67. CF1-5 = 500.935 $ 199.000) + (0.81 Squared dev.607.000.000 5 | 110.000. Reference Materials. times probability $250.03 $0.607.000. (13. and then solve for NPV = -$1.100.718 $213.000 4 | 110. times probability $17.104. CF1-5 = 500. Lecture Notes.75 0. I/YR = 10.000 3 | 110.000 (65%) Step 1: Find the NPV at t = 0 of the first project: Enter the following data inputs in the financial calculator: CF0 = -3. 0.5 E(NPV) = $ -6.525 -138. (13. and then solve for NPV = -$6. Note also that a lower cost of capital should be used to find the NPV of the Go Now decision than the Wait decision. the firm will choose not to do the additional projects (since their NPV is -$6.154 $266. this is the NPV at t = 5.671 $752.678. Enter the following data inputs in the financial calculator: N = 5. 2010) INART 115: THE POPULAR ARTS IN AMERICA POPULAR MUSIC The Popular Music Forum: Assignment #1 A Position Paper on The Future of Popular Music.5 -250.3) Abandonment option--nonalgorithmic No abandonment: Yr. Step 2: Find the NPV at t = 0 of the new projects: If at t = 5 the firm's technology is not successful.500. I/YR = 10.00 NPV $616.5 0.000.000 25.104.525 159.69.002. 0 1 | 110. To be followed by a Response Paper NOTE: This assignment is to be a minimum of 500 words in length and due no late.23 Delay. unrealistic. cvpr01_segmentation ull.000 0. and then solve for NPV = -$1.000 25. and then solve for PV = $1. PMT = 0.000.5)($25.000 500.328 2 | 500.104.
. 2006) . prelims_Macro Prelim ANSWERS Sept 2006 UC Davis >> ECON >> 200D (Winter.....shah @cs.ucf. July 2006Q7:Q8:. DEGREE Directions: Answer all questions. 3:00 12.. 2006) University of California. prelims_Macro Prelim ANSWERS Sept 2008 UC Davis >> ECON >> 200D (Winter.. prelims_Macro Prelim ANSWERS July 2007 UC Davis >> ECON >> 200D (Winter..2009 Response Paper #3 Zakiya Luna interviewed Loretta Ross and in this interview Loretta Ross opens up and talks about her early childhood and how her upbringings helped develop . 2006) . prelims_Macro Prelim ANSWERS June 2004 UC Davis >> ECON >> 200D (Winter. prelims_Macro Prelim ANSWERS June 2008 UC Davis >> ECON >> 200D (Winter.D..eduAbstractVideo segmentation is differe. Davis Department of Economics MacroeconomicsDate: June 30.. Consumption is an element of an exogenous random vector Xt which evolves accordi.. Notes 1 Auburn >> PSYCH >> 2000 (Spring. University of Central Florida Orlando. 2010) Morelos 1 Gabriela Morelos Allison Schifani Feminist Studies Wed..1. logarithmic utility. prelims_Macro Prelim ANSWERS July 2006 UC Davis >> ECON >> 200D (Winter. 2010) 1/13/10 The Story of Psychology #1 Goals for Today: Define psychology With hopes of satisfying curiosity. feminist studies response paper 3 loretta ross UCSB >> FEMST >> 20 (Fall. (1)j=0where 0 < < 1. 2006) Answers to the July 2007 Macro Prelim 1. 2008 Time: 3 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. Sept 06 Macro Prelim3. 2006) 1Answers to Questions 3 and 6. FL 32816 khan.. Motion and Spatial InformationSohaib Khan Mubarak ShahComputer Vision Laboratory School of EECS. X1 j V = (1 )Et ln Ct+j . prelims_Macro Prelim ANSWERS Sept 2004 UC Davis >> ECON >> 200D (Winter... 2006) Answer Key for the September 2007 Macro Prelim 1. 2006) Answers to Questions 7 & 8 on Macro Prelim.Object Based Segmentation of Video Using Color.. SHORT QUESTIONS 1.. Imagine a representative consumer with time separable. prelims_Macro Prelim ANSWERS Sept 2007 UC Davis >> ECON >> 200D (Winter... 2006) . This was a simple question that required a recognition that the laborleisure choice in an RBC framework will be characterized by a variant of the following necessary condition: -Uh = wage UcIf labor. What is dynamic e ciency? Can the steady-state equilibrium in the Ramsey model be dynamically ine cient? Why or why not? ANSWER: An allocation is dynamically ine cient if the capital stock exceeds the Golden Rule l. Consider two closed economi. many people listen to talk-radio counselors and psychics to learn about others and themselves Psychology Scientific study of behavior and mental proc..
2006) University of California. the weights for each question are given in. prelims_Macro Prelim July 2007 UC Davis >> ECON >> 200D (Winter...D...D. Note that. prelims_Macro Prelim Sept 2007 UC Davis >> ECON >> 200D (Winter.Keep your answers sho. 2008 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.Keep your answers shor.. Davis Department of Economics MacroeconomicsDate: September 8.. Davis Department of Economics MacroeconomicsDate: July 3. Suppose that a representative consumer receives an endowment of a non-storable consumption good. Davis Department of Economics MacroeconomicsDate: July 2. DEGREE Directions: Answer all questions. 2005 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. Part 1 collectively counts for 25 percent . 2006) University of California. Davis Department of Economics MacroeconomicsDate: July 5.. prelims_Macro Prelim July 2005 UC Davis >> ECON >> 200D (Winter.. 2006) University of California.. prelims_Macro Prelim Sept 2004 UC Davis >> ECON >> 200D (Winter.(1)where is the difference . 2006) University of California. 2006 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.. 2006) University of California. DegreeDirections: Answer all questions. D. SHORT QUESTIONS (Each question is worth 10 poin.. DEGREE Directions: Answer all questions. Davis Department of Economics MacroeconomicsDate: September 7. DegreeDirections: Answer all questions. 2004 Time: Four Hours Reading Time: 20 minutesPreliminary Examination for the Ph. prelims_Macro Prelim June 2008 UC Davis >> ECON >> 200D (Winter. Davis Department of Economics MacroeconomicsDate: June 30. Note that. 2006 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. DEGREE Directions: Answer all questions. 2006) University of California.. 2006) University of California. 2006) . 2006) University of California. The endowment evolves exogenously according to ln Ct = + ln Ct1+ "t . prelims_Macro Prelim Sept 2005 UC Davis >> ECON >> 200D (Winter.D. prelims_Macro Prelim July 2006 UC Davis >> ECON >> 200D (Winter...D. DEGREE Directions: Answer all questions.D.1 Answers to the Sept 08 macro prelim . DEGREE Directions: Answer all questions.. 2007 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.. 2005 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.. 2004 Time: Four Hours Reading Time: 20 minutesPreliminary Examination for the Ph.Long Questions1. DEGREE Directions: Answer all questions. while you have four hours f. Davis Department of Economics MacroeconomicsDate: June 28. while you have four hours for t.. prelims_Macro Prelim Sept 2006 UC Davis >> ECON >> 200D (Winter. prelims_Macro Prelim June 2004 UC Davis >> ECON >> 200D (Winter. Part 1 collectively counts for 25 percent of th.D. Davis Department of Economics MacroeconomicsDate: September 9. D.Short Answer Questions .Short Answer Questions .
Short Answer Questions .. 2007 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. 2006) 5 2.a. DEGREEANSWER KEYPart 1 Insurance (a. 2008 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.. and hence u(s) > u(x*(B1) . Proof of the property. 2006) University of California. . Davis Department of Economics MacroeconomicsDate: September 6..e. then. j= same amount of. prelims_Micro Prelim ANSWERS June 2008 UC Davis >> ECON >> 200D (Winter. prelims_Micro Prelim ANSWERS August 2008 UC Davis >> ECON >> 200D (Winter. prelims_Macro Prelim Sept 2008 UC Davis >> ECON >> 200D (Winter. s).. 2006) Microeconomics Prelim August 31.. the consumer demands the w ...First. 2006) Microeconomics Prelim August 2008ANSWER KEYQuestion 1. w). and. The prese. prelims_Micro Prelim ANSWERS June 2004 UC Davis >> ECON >> 200D (Winter. 2006) Microeconomics Prelim June 2005 Answer Keys1. then the cost-minimization problem will have only corner solutions. 2006 Answer KeysCase 1: > 1. 2007 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. Davis Department of Agricultural and Resource Economics Department of Economics MicroeconomicsDate: June 25.. prelims_Micro Prelim ANSWERS June 2007 UC Davis >> ECON >> 200D (Winter.c(s). DEGREE Directions: Answer all questions. a subset of +1 .. 2006) . the firm will either buy only Type 1 labor ( zj1 > 0 and zj1 = 0) or only Type 2 labor (zj1 = 0 and zj2 > 0). xL. Because t. i. In this case the utility function is strictly quasiconcave. 2006) University of California.. 2007 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.c(s) and. Let P the set of relevant price-wealth vectors (p.. u(s) > u(x*(B0) .D.Keep your answers. If the production function is strictly quasiconvex.L+ (a). assumed to be strictlypositive and diffe.D. agai... the questions are equally weighted 1. prelims_Micro Prelim ANSWERS June 2005 UC Davis >> ECON >> 200D (Winter. and denote by x j : P + a consumer's Walrasian demand for good j. prelims_Micro Prelim ANSWERS August 2006 UC Davis >> ECON >> 200D (Winter.D. u(x*(B0) > u(x*(B1). DEGREE Directions: Answer all questions. Because B1 B0. and let x0 be chosen at (B0.. 2006) University of California. by (1). Imag... if x0 = s. 2006) . Let x0 B1 B0 . L. j = 1...University of California...D.1(d). Davis Department of Economics MacroeconomicsDate: September 4. prelims_Micro Prelim ANSWERS August 2007 UC Davis >> ECON >> 200D (Winter. Davis Department of Agricultural and Resource Economics Department of Economics MicroeconomicsDate: August 30. prelims_Micro Prelim ANSWERS June 2006 UC Davis >> ECON >> 200D (Winter. DEGREEANSWER KEYPart 1.. because all prices are equal and the utility function is symmetric in x1.
.D.L+ (a).. because the physical cost of firm i depends on theaggregate output q =N j =1q j through the term (q i + q -i ) .. prelims_Micro Prelim August 2008 UC Davis >> ECON >> 200D (Winter. Davis Department of Economics MicroeconomicsDate: June 21.. Let P the set of relevant priceweal..D. 2006) University of California. 2006) MICROECONOMIC THEORY PRELIM FALL 2005 ANSWER KEYQUESTION 1Throughout this question we assume that consumers have preferences over the quantities of two market goods.. 2004 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. DEGREEPlease answer four of the fo. Davis Department of Economics MicroeconomicsDate: August 31. There is a production externality.D. prelims_Micro Prelim ANSWERS Sept 2005 UC Davis >> ECON >> 200D (Winter. 2006) University of California.. 2006) University of California... The extra 1 hour is intended to rem.D. DEGREE=Please answer four of the following five questions 1. prelims_Micro Prelim August 2007 UC Davis >> ECON >> 200D (Winter. 2006) University of California.. The parameter reflects theexternality. 2006 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. 2006 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph... 2008 Time: 5 hoursMicroeconomicsReading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. 2006) University of California. x1 > 0 and x2 > 0. 2007 Time: 5 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph.. prelims_Micro Prelim June 2007 UC Davis >> ECON >> 200D (Winter. 2006) University of California. 2006) Answer Key.D.. then the externality is neg... Davis Department of Agricultural and Resource Economics Department of Economics MicroeconomicsDate: August 30. Davis Department of Economics MicroeconomicsDate: June 27. Question 2 2(a). Variat. prelims_Micro Prelim June 2006 UC Davis >> ECON >> 200D (Winter.. prelims_Micro Prelim June 2005 UC Davis >> ECON >> 200D (Winter.D. prelims_Micro Prelim June 2004 UC Davis >> ECON >> 200D (Winter. as well as the size g > 0 of a park. A consumer has no control over . Choice with status-quo bi. DEGREEQuestion 1. DEGREE Answer FOUR questions Question 1. 2006) . Fancy scotch in Scotland and in AustraliaIs the ratio of fancy scot. Davis Department of EconomicsDate: August 28. If > 0. Davis Department of Economics MicroeconomicsDate: June 26. DEGREE=Please answer four of the following equally weighted five questions1. prelims_Micro Prelim ANSWERS Sept 2004 UC Davis >> ECON >> 200D (Winter. DEGREEThis exam is designed to be done in 3 hours. prelims_Micro Prelim August 2006 UC Davis >> ECON >> 200D (Winter. 2005 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph...
True b. the CAPM would indicate that the required rate of return on Selleck should be less than the risk-free rate for a well-diversified investor. False Portfolio beta 10. False Portfolio risk 8. practice exams. then one of them must have a negative beta. even if the correlation between the returns of it and another firm are negative. False Medium: CAPM 9. 2006) Course Hero has millions of student submitted documents similar to the one below including study guides. True b.D. True b. Answer: b The slope of the SML is determined by the value of beta. Answer: a Diff: E If you plotted the returns of Selleck and Company against those of the market and found that the slope of your line was negative. Answer: b Diff: M The Capital Asset Pricing Model (CAPM) is a multi-period model which takes account of differences in securities' maturities. 2004 Time: 4 hours Reading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. DEGREE Answer FOUR questions Question 1. the rise-over-run calculation results in a ratio. 5 CHAPTER RISK AND RETURN: EXTENSIONS (Difficulty: E = Easy. a. True b. textbook help and tutor support. practice problems. prelims_Micro Prelim June 2008 UC Davis >> ECON >> 200D (Winter. Davis Department of Economics MicroeconomicsDate: September 2.Page 2 SML 6. 2006) University of California. prelims_Micro Prelim Sept 2004 UC Davis >> ECON >> 200D (Winter. Answer: a Diff: E The SML relates required returns to firms' systematic (or market) risk. False SML 11. True b. a. Answer: a Diff: E It is possible for a firm to have a positive beta. True b. True b. A consumer with wealth w buys goods 1 and 2 in.. assuming that the observed relationship is expected to continue in the future. If all the observation points for the security's returns and the market's returns do not fall on a straight line then the ratio is subject to change. The slope and intercept of this line are not controllable by the financial manager. Answer: a Diff: E In portfolio analysis.Page 1 Chapter 5 .. False Diff: E SML 7. a. a. Answer: a Diff: E If the returns of two firms are negatively correlated. False Linearity and beta 4.D. False Beta coefficient 3.. reference materials. and T = Tough) True-False Easy: Beta coefficient 1. a. Answer: b Diff: E A stock with a beta equal to -1. False SML 5. M = Medium. 2008 Time: 5 hoursMicroeconomicsReading Time: 20 minutesPRELIMINARY EXAMINATION FOR THE Ph. DEGREEPLEASE ANSWER FOUR QUESTIONS (OUT OF FIVE)Question 1. prelims_Micro Prelim Sept 2005 UC Davis >> ECON >> 200D (Winter. a. a. Answer: a Diff: E In estimating a security's beta coefficient.. False Chapter 5 . True b. despite the fact that we are interested in ex ante (future) data. 2006) University of California. In this question we c. Davis Department of EconomicsDate: June 23. Answer: b Diff: M The Y-axis intercept of the SML indicates the return on the individual asset when the realized return on an average (b = 1) .0 has zero systematic (or market) risk.... we often use ex post (historical) returns and standard deviations. and it can be used to determine the required rate of return for any given level of systematic risk. a. True b. True b. Answer: b Diff: M We will almost always find that the beta of a diversified portfolio is less stable over time than the beta of a single security. a. False Beta coefficient 2. a.
Beta. Variance. beta. d. Stock B would be a more desirable addition to a portfolio than Stock A.01 -0. B. The past realized rate of return must be equal to the expected rate ^ of return. a. Diff: E Which of the following is not a difficulty concerning beta and its estimation? a. However. If these data are as follows.61 1. The beta of the portfolio is less than the beta of each of the individual stocks. Beta. The beta of the portfolio is greater than the beta of one or two of the individual stocks' betas. Answer: c Beta coefficient 16. it is possible that the required return could be higher on the low standard deviation stock. c.03 -0. The factors are (1) market returns." or "the market. C. Stock A has greater risk than Stock B. r r . but not necessarily at the same time). -1. 0.06 Stock A 0. Sometimes. d. The riskiness of the portfolio is less than the riskiness of each of the stocks held in isolation. +1. Standard deviation. False Arbitrage Pricing Theory 13. A. bB = 0.10 0. c. Chapter 5 . sometimes drastically. bB = 1. e. beta. c. (2) dividend yield. C. Sometimes the past data used to calculate beta do not reflect the likely risk of the firm for the future because conditions have changed. All three of the above statements must hold for equilibrium to exist.05 0. a. True b. The required rate of return must equal the realized rate of return. e. if assets are held in portfolios. bB = 1. variance. b. that is. correlation coefficient.e. b. d. Answer: d Diff: M You have developed data which give (1) the average annual returns of the market for the past five years and (2) similar information on Stocks A and B. r r r . Which of the following statements must be true about these securities? (Assume market equilibrium. The expected return on Stock B will be greater than that on Stock A. The beta of an "average stock. You have developed the following data on three stocks: Stock A B C Standard Deviation 0. the calculated beta will be drastically different than the "true" or "expected future" beta. When held in isolation.Page 5 Portfolio risk and return 18. All of the statements above are potentially serious problems. B. during a period when the company is undergoing a change such as toward more leverage or riskier assets.15 0.05 0. Answer: d Diff: E Which Which is the best measure of risk for an asset held in isolation? is the best measure for an asset held in a diversified portfolio? a. b. False Chapter 5 .29 Answer: b Diff: E As a risk minimizer. c. 0. return. Stock A would be a more desirable addition to a portfolio than Stock B. bB = 1. you would choose Stock if held in isolation and Stock if held as part of a well-diversified portfolio. ^ that is. Coefficient of variation. c.5. e. c. r b.16 0.25 0. e. c. d. b. that is.05 0.14 Stock B 0.20 Beta 0.05 Market equilibrium 20. Answer: b Diff: M Arbitrage Pricing Theory is based on the premise that more than one factor affects stock returns.20 0. bA bA bA bA bA > > = < < 0. for there to be no strong pressure for prices to depart from their current levels).Page 4 Risk measures 15.) a. Beta coefficient 17.Page 3 Risk aversion 12. Chapter 5 . bB = 0. Sometimes a security or project does not have a past history which can be used as a basis for calculating beta. False Multiple Choice: Conceptual Easy: Risk aversion 14. Answer: a Diff: M If investors are risk averse.5 and Stock B has a beta of 0. which of the possible answers best describes the historical beta for A and B? Years 1 2 3 4 5 a.. Answer: d Diff: E Stock A has a beta of 1.21 will be greater than the return required on an asset whose standard deviation is 0.25 0. Answer: a Diff: M Market 0. For markets to be in equilibrium (that is. B. which of the following could not be true? a. b. that is. A. a. d. None of the above statements is . they all could be true. we can conclude that the required rate of return associated with an asset held in isolation whose standard deviation is 0. The expected rate of return must be equal to the required rate of ^ r.05 0. r r. True b. The expected return on Stock A will be greater than that on Stock B. True b. The riskiness of the portfolio is greater than the riskiness of one or two of the stocks. Answer: c Diff: E In a portfolio of three different stocks. A.10.05 0. correlation coefficient.18 0. d. and (3) changes in inflation. a. a. e." can change over time. Medium: Beta coefficient 19. d. e.stock is zero. A.79 0. e. C. None of the above (i. b.
and c are correct. All portfolios that lie on the CML to the left of M are inefficient.000. b.8%. b.32 Answer: d Diff: E Required return 28. a size factor. Answer: b Diff: E You hold a diversified portfolio consisting of a $5. and a debt. What will be the expected return and beta of the portfolio after the purchase of the new stock? a. Calculate the required rate of return for Mercury.10 1. c. The distance of the plot points from the characteristic line is a measure of the stock's market risk.correct.94 and the typical R2 for a is about 0. Which of the following statements is most correct? a. an industrial production factor. e. d. The excess market return. R2 for a stock about 0. d.Page 8 Portfolio return 27. a debt factor. b. The required rate of return on the stock is 15 percent when the required return on an average stock is 10 percent. and a book-to-market factor. e.17 1. and a book-to-market factor. What will be the percentage change in the required return on the stock if the required return on an average stock . Which of the following statements is most correct? a. 15% 16% 17% 18% None of the above Medium: Required return 29.40 1. The excess market return.0%. d. The typical portfolio is Fama-French Model 25.Page 6 CML 21. b. b. Which of the following statements is most correct? a. 14. ^ b.00 1. a size factor.0). The characteristic line is the regression line that results from plotting the returns on a particular stock versus the returns on a stock from a different industry. Tests have shown that the betas of individual stocks are unstable over time. and a book-to-market factor.12. b. AT&E has an expected return of 20 percent with a beta of 2. The Capital Market Line (CML) is a curved line that connects the risk-free rate and the market portfolio. Characteristic line 22. R2 for a stock about 0.0%. and its realized rate of return has averaged 15 percent over the last 5 years.0. The typical portfolio is c.6 and the typical R2 for a Answer: a Diff: M Which of the following are the factors for the Fama-French model? a. c. Multiple Choice: Problems Easy: Portfolio beta 26. R2 for a stock about 0. Mercury has a beta of 2. All portfolios that lie on the CML to the right of are M inefficient. e. The distance of the plot points from the characteristic line is a measure of the stock's diversifiable risk.Page 7 Beta calculation 24. c.94. Statements a and b are correct. Answer: b Diff: E You are an investor in common stock and currently hold a welldiversified portfolio which has an expected return of 12 percent with a beta of 1. Tests of the CAPM 23. The total value of your current portfolio is $9.22 1. d.02 Chapter 5 . Answer: e Diff: M Answer: e Diff: M Chapter 5 . Answer: c Diff: M You are holding a stock which is currently in equilibrium.0) at $5. The excess market return. Answer: c Diff: M is about 0. The slope of the CML is ( r M rRF)/bM. A debt factor. a size factor.000 net and use the proceeds to buy a like amount of a steel company stock (b = 2. Tests have shown that the risk/return relationship appears to be linear. c. c. a.94. The typical portfolio is d. None of the above statements is correct. You have decided to sell a lead mining stock (b = 1. R2 for a stock about 0.3 and the typical R2 for a is about 0. Statements a. Richard Roll has argued that it is not even possible to test the CAPM to see if it is correct. The real risk-free rate is equal to 3 percent and the market risk premium is 5 percent.0.3. e. but the slope of the relationship is less than that predicted by the CAPM. The typical portfolio is e. The portfolio beta is equal to 1. and a book-to-market factor..28 1.6.0%. 12. The excess market return. Inc.2.000 investment in each of 20 different common stocks. bp bp bp bp bp = = = = = 2. but that the betas of large portfolios are reasonably stable over time. e. R2 for a stock about 0. c. Which of the following statements is most correct? Answer: e Diff: M a. 12. b. e. d. e. 1. The typical portfolio is b. d. assuming that investors expect a 5 percent rate of inflation in the future.6. You plan to buy 100 shares of AT&E at $10 a share. "Characteristic line" is another name for the Security Market Line.3 and the typical R2 for a is about 0. What is the new beta of the portfolio? a. 13. Chapter 5 . d.12 1. c. rp rp rp rp rp = = = = = 20.20 1. The slope of the characteristic line is the stock's standard deviation.2%.94 and the typical R2 for a is about 0.
A or B? Why? No calculations are necessary to answer this question.75 The market required rate of return is 15 percent and the risk-free rate is 7 percent. Now suppose we add a riskless asset to the investment possibilities.4 percent deviation of 15 percent. c. e. Suppose rM = 12 percent. along with the returns on the market: Year 2000 2001 2002 2003 2004 URI -14% 16 22 7 -2 Market -9% 11 15 5 -1 If the risk-free rate is 9 percent and the required return on URI's stock is 15 percent. Inc.3% 15. 50 percent. Now add to the graph the Capital Market Line (CML). The funds' assets are as follows: Stock A B C D Investment $ 200. c.9. 75 percent.50 1. b.increases by 30 percent while the risk-free rate is unchanged? Your stock has a beta of 2.7% 10. Oakdale Furniture.70 21. with a standard market of -0. along with data . 13% Chapter 5 . What effects will this have on the construction of portfolios? d.25% 17. Answer: c Diff: M Consider the following information and then calculate the required rate of return for the Scientific Investment Fund.3% Answer: c Diff: M Required return 31. e. Which part of the attainable set is efficient? Also. what will be Oakdale's new required rate of return? a. hence get different values of rp and p. Let an indifference curve be tangent to the efficient set at the point where rp = 11 percent.81 0. while rYM = 0. a. e. or some combination of the two.) Portfolios and risk 35.Page 10 e. b. Finally.30% -3. Use the values you calculated for rp and p to graph the attainable set of portfolios. What are the beta coefficients of A and B? Calculations are necessary. d. Diff: T with a standard market of 0. show on your graph the indifference curve of an investor who has a relatively low degree of risk aversion. e. The market risk premium is currently 5 percent.71 Market 6. 14. is 0. which security is more risky. 4% b. rXM. b.Page 9 Required return 30. a. rXY is 0. c.1% 12.50% 22. and a correlation with the The standard deviation of rM is 12 percent. and rRF = 6 percent. what is the required return the on market? Assume the market is in equilibrium. What would be the required and expected return on a portfolio with P = 10 percent? e. (Hint: Think rise over run. a. If the risk-free rate is 6 percent.000 1. Calculate rp and p for 100 percent. d. what is the difference in the calculated beta coefficient of Stock Q when Year 1 and Year 2 data are used as compared to Year 2 and Year 3 data? Year 1 2 3 a.67.000. and make a precise graph. has a beta coefficient of 0. and a riskless asset with rRF = 7 percent.) a.00% Answer: d Diff: M Market return 32. What are r p and p for this investor as read from your graph? (Different students will use different indifference curves.000 Beta 1. 13.23 0.10% 12. draw in a set of hypothetical indifference curves to show how an investor might select a portfolio comprised of Stocks X and Y. Use this information. To someone who acts in accordance with the CAPM.75. +20% +30% +40% +50% +60% Chapter 5 . 16% Beta and base year sensitivity 33. 25 percent.0% 13. Suppose the correlation of Stock X with the market.06 6. and 0 percent in Stock X.80% 18. what is the value of rM? Chapter 5 .73 percent deviation of 20 percent.90 16. Inc. and = 6 percent.17 1. Security A has an expected return of 12. d. a. Stocks A and B are uncorrelated (rAB = 0).000 300. b. 9. 10% d. and The X = 5 percent. Stock B with rB = 15 percent and B = 20 percent. b.75% 15. Answer: a Diff: M Given the following returns on Stock Q and "the market" during the last three years.25 0. c.50 -0. and a correlation with the Security B has an expected return of 0. The Y correlation coefficient. Show your work.8. c.7 and a required rate of return of 15 percent. Stock Y. Assume an economy in which there are three securities: Stock A with r A = 10 percent and A = 10 percent.Page 11 Portfolios and risk 36. (URI) are listed below. d. The expected return for X is 10 percent. expected return for Y is 12 percent. M = 4 percent. The returns of United Railroad. b. Develop a graph of the feasible and efficient set of portfolios of risky assets.20 Portfolios and risk 34.85. If we expect the inflation premium to increase by 2 percentage points and Oakdale to acquire assets which will increase its beta by 50 percent. b. a. c.56 Diff: T Stock Q 6. c. it is easy. 9% c. Diff: T You plan to invest in Stock X.000 500.
rM increases by 30%.10 = 1.25 0. Required return Stock A B C D Weight 0. 21% 15% = 40%. rs = 15%.9%)1. giving consideration to the existence of the riskless asset.M A. Year 2-Year 3 data: beta = (21. 7.7%)0.9%. 0. 34.20 20. Difference: betaY2-Y3 . 10.10)1. 22. 13. 23.0) = 1. bp 0.8%.5%. rs = 5% + (13% .2 ( ) 0.7% . 15% = rRF + 20% .5. After: bP = 0.(-3. 18.rM) = where A.9 1. p x2 AB 2 A 1 x 2 2 B 2x 1 x AB A B . 25. 16. rs = 7% + (15% . 20. 2 A x2 1 x2 2 B . Required return Step 1: Step 2: Step 3: 15% = rRF + (10% .50 13.5%)2 = 21%.75% and = 14.6. The rate of return on riskless assets is 6 percent.M A.9%)1.75%.00 p rp = xrA + (1 .Y0)/(X1 . one could use the data to calculate covariances for A and B: Cov(rA.5% + (5%)1. Stock B has rB = 14 percent and B = 15 percent. 3.18 15. 2.1 20%) ( 12. 11 4 Answer: c Diff: M Answer: d Diff: M 15% = 9% + (rM .3% = 7. = Correlation of .90% . 8. how would an equilibrium be produced? Chapter 5 .05(2. 9.5 + (0.3(10%) = 13%. so.50)0.25 12. 14. 6.X2) = (-3.00% 11. Although it is not necessary for answering the question. and everyone's indifference curves were such that they were tangent to the CML to the right of the point where the CML was tangent to the efficient set of risky assets.17. Explain what would happen to the CML if the two stocks had (a) a positive correlation coefficient or (b) a negative correlation coefficient.Page 14 33. what would happen to bring about an equilibrium? Efficient portfolios 37. b.(-1. This occurs because Security B has a negative covariance with the market--holding B in a diversified portfolio lowers the riskiness of the portfolio.12 = 0.01 11. What is the required rate of return on Stocks X and Y? Do these stocks appear to be in equilibrium? If not.75 15.30%)/(12. 26.5) + (0.given previously. 0. Portfolios and risk Diff: T a.25 + (0. 15% 30.70 .05 = 18.15)(-0. bR = 1. 19.17.95(bR) = 1.15 0.47. After: rs = 13.05(1.x)rB.5.betaY1-Y2 = 7.1 2. 17. The very fact that rA > rB indicates that Security A is regarded by investors as the more risky one.95(bR) + 0.41%/3. 11.0). rRF = 11.Page 12 CHAPTER 5 ANSWERS AND SOLUTIONS 1. f.70.7625. 21. Portfolio return Answer: b Diff: E ^ rp 28.25)1. Chapter 5 .10%) = -10.00% 9. Diff: T Stock A has an expected return rA = 10 percent and A = 10 percent.7625 = 13. B.08 + (0.05)2. rAB = 0.70%))/(16. rM = 13%.2rRF. kp p (%) (%) 15 14 13 12 11 10 9 8 7 Portfolios and risk CML Diff: T r 2 4 6 8 10 12 14 16 18 20 p (%) Percent A _________ 100 75 50 25 0 Percent B _________ 0 25 50 75 100 rp ______ 10.25%. Required return Before: 15% = rRF + (5%)0. Beta and base year sensitivity Answer: a Diff: M Year 1-Year 2 data: Rise/Run = (Y1 .0 ( ) 1.50 Answer: c Diff: M b = (0.07 + 0. Market return b = Rise = Run 22 Y = 15 X 16 6 = = 1. rRF = 5%. 31.0%/6.71% .9 12%) ( 0.90%) = 25. 6% = (rM .7. a. rs = 0.rRF)2. 4.Page 13 24.75 = 0. But p = 0. Beta calculation FamaFrench Model Portfolio beta Answer: c Answer: a Answer: b Diff: M Diff: M Diff: E Before: 1.95(bR) + 0.47) = 9.20% . Suppose these were the only three securities (A. Chapter 5 Page 15 35. Answer: d Diff: E Required return rRF = r* + IP = 3% + 5% = 8%.28.10 0. Would this represent a stable equilibrium? If not. 4% = rM . Construct a graph that shows the feasible and efficient sets. rp = 14.13. 5. and riskless) in the economy. so rM = 1.8% beta = 1.5. Answer: c Diff: M 29.00 ______ 10. 12. p For our investor. 32. Beta coefficient Beta coefficient Beta coefficient Linearity and beta SML SML SML Portfolio risk CAPM Portfolio beta SML Risk aversion Arbitrage Pricing Theory Risk aversion Risk measures Beta coefficient Beta coefficient Portfolio risk and return Beta coefficient Market equilibrium CML Characteristic line Tests of the CAPM Answer: e Answer: e Diff: M Diff: M Answer: a Answer: b Answer: b Answer: d Answer: c Answer: d Answer: c Answer: d Answer: a Diff: M Diff: M Diff: E Diff: E Diff: E Diff: E Diff: E Diff: M Diff: M Answer: a Answer: b Answer: b Diff: E Diff: M Diff: M Answer: a Answer: b Answer: a Answer: a Diff: E Diff: E Diff: E Diff: E Answer Answer Answer Answer Answer Chapter 5 . 27. to determine Stock X's and Stock Y's beta coefficients.6. c.07.M A M.0 = 18%.1%.12. 15.
Page 18 37.x) rY = rp ______________________________________________ 1.0625rM = 12. For x = 0.0 8. ^ ^ 10% < 11%. rM 2 M X M 2 M XM M 5% 0.001125 At 25% Stock X: Chapter 5 .00 2 2 Y 12% 12 12 12 12 x cov XY 10. Cov(rB. rp = 0.25 1.75 0. c.12 = 12%. rM 2 M 0. Their prices would decline.50 0.06 2 0. Now investors will choose combinations of the market portfolio and the riskless asset.06.0625 = 12.0625 .0025 0. in a single-asset portfolio.0 B C A D Efficient Set (BCDE) E Attainable Set 1 2 3 4 5 6 7 Portfolio Risk. the security's risk is measured by the variance of its returns.0625. Beta coefficients of A and B are calculated as follows: bA Cov rA .0 11.5 12. rp = x(rX) + (1 x)(rY) x rX + (1 .50 0.85. 1.000625 2 0. both stocks are out of equilibrium. 4% 4% e. A similar solution could be obtained by applying the CAPM equation to Chapter 5 .75 0. A = 10%.00% 4.775%.00141 0.000844 At 50% Stock X: p 0. Efficient portfolios kp Diff: T (%) (%) 14 13 12 11 10 9 8 7 6 C B A D E rp p (%) 0 2 4 6 8 10 12 14 16 ABCDE = feasible set.775%/1.00225.06 2 0.01608.80 4% 1.50 2 0. 36.15)(0.00225 0.x) rp(%) Return p (%) ________________________________________________________ 100 0 10.4% 4% 1.06 0.12) = -0. b. rM 2 M A.003025 0. d. A is riskier. p 0. and rY 12% < Since the expected return on X. higher than that of B.00 The segment BCDE is efficient.50 6. VarianceA = VarianceB = 2 A = (0.M A 2 M M 0. At 100% Stock X: p 1.6%)1. a new portfolio can be created which combines risk-free and risky assets.25 0.002025 2 0.02%.04. rAB = 0%.375% = 12.01%.00225 0. b.5: = 15%.75 1.75 2 0.rM) = 0.06) = 0.52 0 100 14. rX = rRF + (rM .1167 .0009 2 2 0.0 15.75%.0036 0. If borrowing is permitted. = Standard deviations respectively.00225 0.00 2 0. and = (0. Portfolios and risk Diff: T Expected Portfolio Return. of returns of A and the market.0 11.0 10.0225. b X cov rX . Therefore. 2 B Thus.50 0.50 2 0.5 2 10 2 25 56.0 2 0. With the addition of a riskless asset.Page 16 rM = 12.5(14%) = 0. rB = 14%.5 11. Security A's contribution to the portfolio risk is.05 2 0.5(10%) + 0. p(%) a. a. The table below shows the returns and standard deviations for various portfolios of Securities A and B. bB Cov rB.05.39 50 50 12.20)2 = 0. Chapter 5 .25 2 0. They are both overvalued.75)(0. rp rRF rM M rRF p 6% XM 12% 6% 10% 4% X 21%.0 11.rM) = B. B is riskier than A.rRF)bX = 6% + (11% .Page 19 p x2 2 A 1 x 2 2 B 2x 1 x AB B A B . rRFD = efficient set including riskless asset. bY 6% 0. until an equilibrium was restored.M B M = 0.00 75 25 11. and their expected returns would rise.50 0.05 2 0.15)2 = 0.00 ________________________________________________________ Calculations: rp = xrA + (1 .0% 10. 0. 0. Securities A and B in the b.00 0. rp and for other combinations of p portfolio were similarly calculated.0 x2 1 X Y x 2x 1 covXY = rXY = (0.4% 6% + 6.055 .5 0 10 15 9.0 9.85(0.0.04979 .75 2 0.05 + 0. therefore.07 = 0.06 2 0.25 2 0.67(0.75 0.25 0.25 0.00 0.00 2 p 10% 10 10 10 10 2 X 0.A's return with the market return = 0.000225 2 0.000844 At 0% Stock X: p 1.35 = 12. f. The value of rM is calculated from the CAPM equation: rsA = rRF + (rM .00265 0.0153 0.25 2 0.5 12. ======================================================== Percent of Percent of Expected Standard Portfolio in Portfolio in Portfolio Deviation of Security A Security B Return Portfolio (x) (1 .rRF)bA.9 4% 5. rY = 6% + (11% .5 11. BCDE = efficient set of risky assets.5 0.0 10. In a single-asset portfolio.000156 0.05 2 0.0% 10. but in a diversified (CAPM) portfolio.20)(0.0153.4% = 6% + (rM 6%)1.0 11. Security B. 0.05 0.01 25 75 13.12 2 1. The segment BAE is not efficient.0 12. then less risk-averse investors will move out the CML beyond P.05)(0.98 5.01608 0. If the correlation coefficient . kp rp (%) 13.0 = 11%.x)rB.35. c.75%. At 75% Stock X: p 0. Cov(rA. rX 12. rA = 10%.Page 17 p 0.002479 0.12 2 1.05148 .25 0. Portfolio _________ A B C D E Percent in X ____________ 100% 75 50 25 0 Percent in Y ____________ 0% 25 50 75 100 rp ______ 10.5 2 15 2 81. Chapter 5 .12) = 0. 12.15 5.0 p ______ 5.6%)1.
The final results will include (1) a higher rRF.. 2007) CHAPTER 7 STOCKS AND THEIR VALUATION(Difficulty: E = Easy. Lecture Notes. at the new tangency point we have a new market portfolio. 2007) CHAPTER 8 FINANCIAL OPTIONS AND THEIR VALUATION(Difficulty: E = Easy. M = Medium. True b. Answer: a Diff: EAn option is a contract which gives its holder the right to buy or sell an asset at a predetermined price wi. FM11_Ch_09_Test_Bank CSU Fullerton >> FIN >> 332 (Fall..were positive. and T = Tough)True-False Easy:Capital budget Answer: b Diff: E 1. In a stable equilibrium. rRF. Capital can be defined as the funds supplied by investors. Below is a small sample set of documents: FM11_Ch_06_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. Therefore. with some investors (those who are most risk averse) holding portfolios that contain some of the riskless asset and some of the market portfolio.. This will produce a new tangency point and cause a new CML to be created. Course Hero has millions of course specific materials providing students with the best way to expand their education. Chapter 5 . and T = Tough)True-False Easy:Discounted cash flows Answer: b Diff: E 1. M = Medium. 2007) CHAPTER 10 THE BASICS OF CAPITAL BUDGETING: EVALUATING CASH FLOWS(Difficulty: E = Easy... and T = Tough)True-False Easy:Total stock returns Answer: b Diff: E 1. The com.. Practice Exams and more. will rise. the price of the riskless asset will fall. M = Medium. hence to a change in the efficient set. because no one would want to hold the riskless asset. However. and its rate of return. c. 2007) CHAPTER 6 BONDS AND THEIR VALUATION(Difficulty: E = Easy. bonds. The market value of any real or financial asset. M = Medium. 2007) .Page 20 Find millions of documents on Course Hero . The total return on a share of stock refers to the dividend yield less any commissions paid when the sto.. a. T = Tough)True-False Easy:Options 1. FM11_Ch_13_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. (2) a CML that is less steep than the present one.. FM11_Ch_08_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. Reference Materials. or art work. A firm should never undertake an investment if accepting the project would cause. This will probably lead to a repricing of stocks. including stocks. all securities must be priced so that they will be held in portfolios. If the correlation coefficient were negative.Study Guides. 2007) CHAPTER 9 THE COST OF CAPITAL(Difficulty: E = Easy. This would not represent a stable equilibrium. The riskiness of the portfolio would increase. may be found by . FM11_Ch_07_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. FM11_Ch_10 CSU Fullerton >> FIN >> 332 (Fall.. (4) a rebalancing of portfolios. then the CML would have a less steep slope. and (5) an equilibrium situation in which all securities were held in portfolios and there was no general desire to change portfolio compositions. M = Medium. False Component costs of capital Answer: a Diff: E 2. and T = Tough)True-False Easy:Capital Answer: a 1.. (3) some change in the efficient set. then the CML would be steeper.
2007) CHAPTER 17 CAPITAL STRUCTURE DECISIONS: EXTENSIONS(Difficulty: E = Easy. M = Medium. M = Medium.CHAPTER 13 ANALYSIS OF FINANCIAL STATEMENTS(Difficulty: E = Easy.211... Massachusetts: MIT Press. 2007) CHAPTER 18 DISTRIBUTIONS TO SHARHOLDERS: DIVIDENDS AND REPURCHASES(Difficulty: E = Easy..... FM11_Ch_18 CSU Fullerton >> FIN >> 332 (Fall. D.. Answer: a Diff: EThe optimal distribution policy for a firm strikes a balance betw. AND FINANCIAL RESTRUCTURING(Difficulty: E = Easy. VALUE-BASED MANAGEMENT. INVESTMENT BANKING.0 (Winter. Answer: a Diff: EA typical sales forecast. (2006). Cambridge. the costs of bankruptcy. E. FM11_Ch_16_Test_Bank CSU Fullerton >> FIN >> 332 (Fall.. and T = Tough)True-False Easy:Optimal distribution policy 1. M = Medium. MM show that the capital structure of a firm does not affec... and T = Tough)TrueFalse Medium:Going public 1. FM11_Ch_19 CSU Fullerton >> FIN >> 332 (Fall.. 2007) CHAPTER 20 LEASE FINANCING(Difficulty: E = Easy. 2007) CHAPTER 14 FINANCIAL PLANNING AND FORECASTING PRO FORMA FINANCIAL STATEMENTS(Difficulty: E = Easy. M = Medium. to at least some extent. though concerned with future events.. M = Medium.. Answer: a Diff: EMany leases written today combine the features of operating and financial leases. will usually be base... FM11_Ch_14_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. Answer: b Diff: MGoing public establishes a true market value for the firm an. FM11_Ch_17_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. M = Medium. Answer: a Diff: EIn a world with no taxes. and T = Tough)True-False Easy:Corporate valuation model 1. Such leases could be called "combin. 2007) CHAPTER 16 CAPITAL STRUCTURE DECISIONS: THE BASICS(Difficulty: E = Easy. 2008) Erica Grimaldi Science Technology & Values 0508-211-03References Nye. and T = Tough)TrueFalse Easy:Types of leases 1. they charge a h. Technology Matters: Questions to Live With. 2007) CHAPTER 15 CORPORATE VALUATION..True-False Easy:Sales forecast 1. Paper 2 RIT >> CLA >> 0508.. Answer: a Diff: EBecause creditors can foresee. FM11_Ch_15_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. T = Tough)True-False Easy:Taxes and capital structure 1. . AND CORPORATE GOVERNANCE(Difficulty: E = Easy. and T = Tough)True-False Easy:Ratio analysis 1.Erica Grimaldi Science Technology & Values 0508-211-03Life would be a lot harder. T = Tough)True-False Easy:Bankruptcy costs 1.. 2007) CHAPTER 19 INITIAL PUBLIC OFFERINGS. Answer: b Diff: EThe corporate valuation model cannot be used for a co. M = Medium. FM11_Ch_20_Test_Bank CSU Fullerton >> FIN >> 332 (Fall. M = Medium. Answer: a Diff: ERatio analysis involves a comparison of the relationships between financial statement accounts so as .
2008) Erica Grimaldi Science Technology & Values 050821103 761210 Authority and Science Science has acquired authority by accident.. 2008) Authority Bader Dip Erica Grimaldi Matthew Cipolla Science Tech and Values RIT Date: 12/17/2007What is Authority ? Power to influence or command thought. 2008) Authority and Science.com/indexframe... ImagingPaper1_pg1 .. Technology Matters: Questions to Live With.. Ontario.0 (Winter... Milgram quotes the words of the social philosopher Harold J.0 (Winter. The Art of Science.com/amoment.211. 2008) Erica Grimaldi Imaging For New Media January 24.0 (Winter..... Unknowingly. & Sismondo.0 (Winter.maggietaylor.htmlstep-by-step processfinal pieceInfluencesPhil Hansen2007Original Web Loc. DiscussionPaper1 RIT >> CLA >> 0508. DiscussionPaper2 RIT >> CLA >> 0508. 2008) Erica Grimaldi Science Tech Values 0508-211-03 References Castel.. . if we desi. (2006). 2008) Erica Grimaldi Science Technology & Values 0508 21103 Paper 1: The Social Aspects of Modern Science Social aspects are very important to modern science. and science has accepted it.Paper 1 RIT >> CLA >> 0508. ImagingNMpaper2 RIT >> CIAS >> 2083. D. Cambridge. Paper 3 RIT >> CLA >> 0508.. B..211. Schools/Teachers... 2008) Erica Grimaldi Science Technology & Values 050821103 Discussion Paper Authority is the power to influence thought. The public has given science authority. ImagingPaper1_pg2 RIT >> CIAS >> 2083.211.html http:/www. Nye. opinion. Some social aspects of modern science inc. Canada: Broadview Press Ltd. Massachuset. E.0 (Winter. DIscussionNotes2 RIT >> CLA >> 0508. DiscussionNotes1 RIT >> CLA >> 0508..206. ClassNotes4 RIT >> CIAS >> 2083.0 (Winter.0 (Winter.206. with authority comes some dange..com/ EPSON scan settings: mode: pro document type: reflective image type: 24-bit color resolution: 300 or larger Unsharp Mask Filter: off Descreening Filter: on Color Restor.0 (Winter.211..211. 2008) original full sized piece Erica Grimaldi A MomentPhil Hansen2007detailed close-upsOriginal Web Location: http:/philinthecircle. but are not as important as scientific skill. S.206. or behavior. Laski: "Our business. Peterborough. 2008 Above: Photographer: Eric Baden Title of Piece: Angel Southern Live Oak Tree Below: Photographer: Eli Reed Title of Piece: Live Oak Tree Alle . opinion.211.0 (Winter. How has science aquired authority? by accident? Is there any danger associated with authority?What does Milgram think of Authority. (2003). 2008) Examples: http:/www. Examples of authority in our society can commonly be found throughout Government.pattirussotti. or behavior The power to make someone doing something against the will of their consc.
2008) 1016-319: Data Analysis I Exam ILong A1. image size dodge/burn save flatten/cropTHURSDAY! DNG Layered TIFF Flattened File LOG...) Given the Histogram below what can be said about it? Please put an X on the line next to all correct statements:_The histogram is positively skewed.213.comWeek 1 : Overviewsyllabus gestalt principals project 1 homework assignment 1The Gestalt Principles / Overview"the whole is greate.. lecture1-Gestalt RIT >> CIAS >> 2009. duplicate layer b. 2008) What is the difference between a class and an object? object .319... The US government should ban the possession of violent pornography if and only if violent pornography harms women. 2008) 1. _X_T. Legal pornography is considered a form of free speech.RIT >> CIAS >> 2083. 2007) . 2008) After camera raw workflow for photoshop 1.an object is an instance of a class instantiat. 3. 2008 Paper 1: Critique and Reaction of an Exhibit I decided to visit the George Eastman House in Rochester. (10 pts. keep under 4 3.0 (Winter. 2008) Adobe Photoshop: Settings Locations: emg8599 -> Library -> Preferences -> Adobe Photoshop CS3 Settings Workflow: 1.. ClassNotes1 RIT >> CIAS >> 2083. 2008) Layer Types in Photoshop: Background Regular Adjustment Vector Layer Masks: layer-layer mask. 4. Sharpen a. Levels/..0 (Winter.reveal all Selection types: Area based marquee and lassoUSE ANTIALIAS! Color Tone: Magic wand tool Quick selection tool ! really cool Color Range (located.defines what an object can do . The museum is both independent and nonp..what happens on the screen . _X_ The histogram is negatively skewed...206. notes RIT >> CIAS >> 2009. ClassNotes3 RIT >> CIAS >> 2083. 2007) Making vectors from Markers!Step 1 Scanning your markersPlease scan in your images using Photoshop.206. Exam I Answers RIT >> MATH >> 1016. You can do so in the lab. 2007) Elements of Graphic Designinstructor: Miguel Cardona email: elements@mc82..0 (Winter.7 (Winter..230. Violent pornography is protected by the First Amendment. ClassesObjectsFunctionsForLoopsEtc RIT >> GCCIS >> 4002. 8x10 2. ClassNotes2 RIT >> CIAS >> 2083..7 (Winter..does stuff as told by the screen class .. Image Size a.mc82. The Eastman house is an educational museum. MakingVectors RIT >> CIAS >> 2009.0 (Winter.general plan for the object instance . overlay d.7 (Winter. When produced .206. filter -> other -> high pass e..213.217. 2.213. I also believe there are a number of scanners available for student use t.a. b.206. the computer in the back has a scanner attached.com course site: http:/newmedia.0 (Winter.0 (Spring. ..0 (Spring.. 2008) Erica Grimaldi Imaging For New Media January 24. rename layer c. Pornography and Harm RIT >> CLA >> 0509...
goUp)..4 (Fall. Provide a discussion on the relationship between. Volume 43. 3 Mary Washington >> PSCI >> 495 (Fall.. 2008) Engineering Mechanics . multiple voting..StaticsChapter 1Problem 1-1 Represent each of the following combinations of units in the correct SI form using an appropriate prefix: (a) m/ms (b) km (c) ks/mg (d) km N Units Used: N = 10-6N kmkm = 109-6Gs = 10 s.230.0 (Winter. ancient and medieval political thinkers were severely divided about the value of democracy. 2008) Feb 2007 Election RFE/RL analyst Liz Fuller: "only one election has been seen as free or fair" This election: ballot stuffing. Periodical Choice. Discuss in detail the effects of their views on salvation on (i) the best form of go. 2008) What is the difference between a class and an object? object . 2008) Question 4: (A) St. as movies beg.227. Issue 3... In Class Discussion guide Mary Washington >> PSCI >> 291 (Spring. notes RIT >> CLA >> 0502... wii. 4 . 2008) Comprehensive (2) The view that political theorists have about the most important goal in life has a profound effect on their views about (a) the role of the state..umi. 2008) (1) Augustine's view of the state is in many ways the antithesis of the ancient Greek view of the state found in Pericles and Socrates...December18 RIT >> GCCIS >> 4002. 2 Mary Washington >> PSCI >> 495 (Fall.com/pqdweb?DBID=4138&RQT=306&clientId=3589&cfc=1 Article Title: The First Hollywood Sound Shorts. Events RIT >> GCCIS >> 4002. 2008) Cumulative Question #3 While democracy is universally accepted as the only legitimate form of government in the Western world today.when flash do. What are events? -when something happens.CLICK. 1 Mary Washington >> PSCI >> 495 (Fall.an object is an instance of a class instantiat.. Paul's and Augustine's view of salvation. voter intimidation. Page 446 In the late 1920s..230. keyboard.when the user interacts with the program mouse. Date Nov 2005.. Explain in detail why this is the case. -private var currentCar:Car.0 (Winter. 2008) ProQuest: http:/proquest.. vote buying Result: Incumbent Robert Kocharain's successor Serzh Sarkisian wins over o. 2008) Example Code: -upArrow.addEventListener(MouseEvent. which are not identical but share much in common.. Provide a nuanced discus.general plan for the object instance .. -user inputs . have a profound effect on their views about politics. 1 Mississippi State >> EM >> 2413 (Spring. 7 Mary Washington >> PSCI >> 495 (Fall. and (b) which type of state is best.. touch -system events . 1926-1931 Author A J Dutka.does stuff as told by the screen class .what happens on the screen .. but also be careful to note any similarities Augustine's view of the state.defines what an object can do .
everything is . 2008) Apology Introduction 1. The Symposium Mary Washington >> PHIL >> 201 (Fall.. Virtue.. Presocratics Mary Washington >> PHIL >> 201 (Fall. explains one many problem b/c its diff. 2007) POL 202(3): Political Development in Southeast Asia -Bureaucracy. mostly directed agains. 6 Mary Washington >> PSCI >> 495 (Fall.. Socrates is not a sophist because he is concerned with truth..universe is made of only water.Phaedrus claims Eros is oldest of gods..... 2008) (A) What is Aristotle's doctrine of the mean and how is the doctrine intended to help us lead a vitruous life? Doctrine of the Mean There is no mathematics or precise answers for to determine moral virtue. For Aristotle. Authoritarianism...Mary Washington >> PSCI >> 495 (Fall.. 2008) Second Half Question 2 A. physical states and sustains life . Material Monist . 2008) Second Half Question #1 Aristotle's praise of a society composed primarily of middle class citizens rests on an intriguing psychological analysis of the mindsets of the three main social classes.. Apology&Crito Mary Washington >> PHIL >> 201 (Fall. .story w/ falling into well and being mocked by servant girl .Bad Form The Speeches: A. virtue is a mean that l.. Socrates is defending himself against his accusers at court 2... Immortality of the Soul "Itself" the just itself. it is not perceptible by the s. POL202(3) Pol Dev SEA Mary Washington >> PSCI >> 000 (Fall. 2007) .. not persuasion 3. The most authoritative ii. i..Good form Bad virtue. Phaedrus 1. Phaedo Mary Washington >> PHIL >> 201 (Fall. 2008) The Symposium: Exploring Eros Eryximachus suggests an encomium for Eros. Socrates feels he must defend himself first against old accusers. then. Explain why Machiavelli's belief that morality must be divorced from politics is a radical break from the political thought that preceded him and what limits does Machiavelli place on the use of evil and cruel means in polit. 2008) Phaedo Forms and Ideas. the good itself. Describe Aristotle's class analysis and his arguments . POL202(4) Handout Mary Washington >> PSCI >> 000 (Fall.. Inspires people to do brave things iii. The true essence of something is different from something being beautiful or good. etc. then against pres. POL202(5) Handout Mary Washington >> PSCI >> 000 (Fall. the beautiful itself. the equal itself. 5 Mary Washington >> PSCI >> 495 (Fall. 2008) Presocratics Thales-1 of seven sages of Greece. and Elite Government in Southeast Asia The term bureaucratic polity or bureaucratic-authoritarian regime is often used to describe the elite-dominated political order. 2007) POL 202(4): Political Development in Northeast Asia: Democratization in South Korea and Taiwan South Korea and Taiwan have generated active and effective grass-roots political participation in shaping modern democratic systems.
-Japan Security Treaty. the dominant economic alliance is between multinational firms and the state's politicians.POL 202 (5): Japan and the Newly-Industrializing Economies From about 1965 to 1995.. POL202(6) Handout Mary Washington >> PSCI >> 000 (Fall. overview of W.D.. JFK policy essay outline Mary Washington >> PSCI >> 000 (Fall.thespacereview. but we will only address how economic growth effects gender.. 2007) Sino-Japanese Relations and International Influences During and After the Cold WarHistory of Imperialist Japan I. POL202(7) Handout Mary Washington >> PSCI >> 000 (Fall. 2007) . East Asia was by far the most dynamic and fastest growing region in the world. POL202(10) Handout Mary Washington >> PSCI >> 000 (Fall. Japan became the fir. Italy Terms Mary Washington >> PSCI >> 000 (Spring. 1884/85 First S. to st.... Thailand and Indonesia In Southeast Asia... Introduction: (Hazel) A... Outline for Presentation Mary Washington >> PSCI >> 000 (Fall. "The goal of US space policy was to portray the United States as a more progressive and advanced society. 2007) CHAPTER 21 Statuto albertino: The 1848 constitution put forth by King Charles Albert of Piedomont that allowed extensive powers to remain with the king. 2007) http:/www. 2007) POL 202 (10): RegionalismJapan-Centered Structure of Regional Trade: The dynamic postwar economy of Japan provided the drive and a model for development in the region. POL202(9) Handout Mary Washington >> PSCI >> 000 (Fall... has been bedrock of military security in the Asia-Pacific region. 2007) POL 202 (9): The Asia-Pacific Security Order During and After the Cold War The U. bureaucrats. Britain IDs Mary Washington >> PSCI >> 000 (Spring. signed between Japan and the U.com/article/735/1I. 2007) Economic Development of the "Emerging Newly Industrializing Economies" The ENIEs Malaysia... Militarily 3. This treaty allowed the U. POL202(8) Handout Mary Washington >> PSCI >> 000 (Fall... and reverence for learning has been an important influe. 2007) POL 202(8): Social Change and Ethnic Issues (II) Education and economic growth In countries where Confucian values have been dominant. Colonies i. thus better equipped to set an example . Economically 2.S.. and made Japan the principal champion of greater regional association across the . Kay argument 1. education is regarded as a means of upward social mobility. Politically ii. Meiji Restoration 1867/68 Western style Industrialization 1.S.S.. in 1951. population. with relatively equal income distribution After the Meiji Reforms. education and ethnicity. It allowed the king to appoint Mussolini to PM and use emergency decrees to create his dictatorsh. and their ur. 2007) POL 202(7): Social Change and Ethnic Issues (I)There are many social concerns and ethnic issues to look into in contemporary Asia-Pacific. and vice-ver.
a centerpiece of Tony Blair's legislative program in 2004... Fla . Bill of Rights 1689 Declared that only Parliament could vote to incr.Chapter 6 IDs: Higher Education Bill of 2004 A bill that would raise student fees in order to fund university education.