Discus Pricing Strategies for Firms LO1 Apply simple elasticity-based markup formulas to determine profit-maximizing prices in environments where a business enjoys market power, including monopoly, monopolistic competition, and Cournot oligopoly. LO2 Formulate pricing strategies that permit firms to extract additional surplus from consumers—including price discrimination, two-part pricing, block pricing, and commodity bundling—and explain the conditions needed for each of these strategies to yield higher profits […]

The Economics of Information Assignment LO1 Identify strategies to manage risk and uncertainty, including diversification and optimal search strategies. LO2 Calculate the profit-maximizing output and price in an environment of uncertainty. LO3 Explain why asymmetric information about “hidden actions” or “hidden characteristics” can lead to moral hazard and adverse selection, and identify strategies for mitigating these potential problems. LO4 Explain how differing auction rules and […]

Discus worthy of detailed case study 7. How much attention is given to syntax and how is this defined (contrast the ‘classical’ system based on concord with ‘modern’ methods based on sentence analysis); how much room is given to etymological and syntactic parsing? 8. Is there a section on ‘prosody’? Does a section on ‘style’ (composition, proper elocution) exist? How is this justified as a […]

Describe the portfolio approach to investing 1. Compared to investing in a single security, diversification provides investors a way to: A. increase the expected rate of return. B. decrease the volatility of returns. C. increase the probability of high returns. 2. Which of the following is least likely to be considered an appropriate schedule for reviewing and updating an investment policy statement? A. At regular […]

Discus Private equity and venture capital 1. Compared to exchange-traded funds (ETFs), open-end mutual funds are typically associated with lower: A. brokerage costs. B. minimum investment amounts. C. management fees. 2. Private equity and venture capital funds: A. expect that only a small percentage of investments will pay off. B. play an active role in the management of companies. C. restructure companies to increase cash […]

Order Systematic Risk Is Relevant in Portfolios 1. An investor put 60% of his portfolio into a risky asset offering a 10% return with a standard deviation of returns of 8% and put the balance of his portfolio in a risk-free asset offering 5%. What is the expected return and standard deviation of his portfolio? 2. What is the risk measure associated with the capital […]

Order Strategic Asset Allocation Assignment 1. The investment policy statement is most accurately considered: A. the starting point of the portfolio management process. B. the key intermediate step in the portfolio management process. C. the end product of the portfolio management process. 2. The component of an investment policy statement that defines the investment objectives is most likely to include information about: A. the investor’s […]

Discus The Behavioral Biases of Individuals 1. Which of the following would most likely be classified as an emotional bias? A. The investor has difficulty interpreting complex new information. B. The investor only partially adjusts forecasts when he receives new information. C. The investor has a tendency to value the same assets higher if he owns them than if he does not own them. 2. […]

Order Market-Based Estimates of Risk 1. An investor has the most control over her portfolio’s: A. risk. B. relative returns. C. risk-adjusted returns. 2. A risk management framework least likely includes: A. risk governance, risk mitigation, and strategic risk analysis. B. identifying and measuring risks, risk policies and processes, and risk governance. C. risk mitigation, tracking the organization’s risk profile, and establishing position limits. 3. […]

Explain the technical analysis assignment 1. An assumption of technical analysis is that market prices: A. exhibit identifiable trends and patterns that persist and repeat. B. are the only information necessary to analyze a freely trading market. C. reflect supply and demand conditions because actual transactions reflect rational decisions by buyers and sellers. 2. Which type of price chart requires data on the opening price? […]