User Account

All Pages

Inverse demand functions for a stock

Assignment Help Operation Management
Reference no: EM131340817

Consider two investors (A and B) with the following inverse demand functions for a stock:

A:

p = 100 - q

B:

p = 150 - 2q,

where p is the price of the stock and q the quantity demanded.

1. At a price of 50, how much will A and B purchase of the stock, respectively?

2. If the price falls to 30, how will the two investors adjust their holdings?

3. On this basis, which investor seems to be the most overconfident of the two?

Reference no: EM131340817

Questions Cloud

What prescription of relationship strategy have been adopted : What prescriptions of the relationship strategy (see the Strategic/Consultative-Selling Model) have been adopted by Marcus Smith? Describe why a relationship strategy is especially important in personal selling.
Review the classes from .net common type system : Open other people's code and try to understand it only by reading the code itself. Is everything obvious at first sight? What would you change in that code, how would you write it?
What is the first part of the investment : What is the first part of the investment? What is the second part of the investment? What is the third part of the investment?
What is portfolio weight of each stock : Stock J has a beta of 1.29 and an expected return of 13.61 percent, while Stock K has a beta of .84 and an expected return of 10.55 percent. You want a portfolio with the same risk as the market. What is the portfolio weight of each stock?
Inverse demand functions for a stock : Consider two investors (A and B) with the following inverse demand functions for a stock:
Rewrite the same functionality using a linq query : Write a program that prints to the console all numbers from a given array (or list), that are multiples of 7 and 3 at the same time. Use the builtin extension methods with lambda expressions and then rewrite the same using a LINQ query.
Construct an arbitrage portfolio : Consider European stock options with an exercise price of $40 that expire in 3 months. Assume the underlying stock pays no dividends, is trading at $40, and has a volatility of 20% per annum, and that the risk-free rate is 3% per annum. Currently ..
Identify critical factors in project management : Resource: Blog Template. Create a 1,050-word blog using the template provided. Research best practices in assisting project managers overcome challenges. Identify critical factors in project management.
Develop a testing method for the hypothesis : Compare and contrast the modeling process with the scientific method: Make abservations; formulate a hypothesis; develop a testing method for the hypothesis; collect data for the test; using the data, test the hypothesis; accept or reject the hypo..

Reviews

Write a Review

Operation Management Questions & Answers

  How is the ikea operations design different

How is the IKEA operations design different from that of most furniture retail operations - what do you think might be the major problems in running an operation like IKEA?

  Regards to materiality in the field of independent auditing

Which of the following statements with regards to materiality in the field of independent auditing is correct? PCAOB auditing standards establish specific quantitative guidelines for determining the materiality of a discovered financial statement def..

  Provides management services to music artists

Live Nation operates music venues, provides management services to music artists, and promotes more than 22,000 live music events annually. The company merged with Ticketmaster and acquired concert and festival promoters in the United States, Austral..

  Explain how can the resource planning method at flashy

write a one-page analysis according to the business brief guidelines. complete sentences must be used bullets not

  Analyze the validity of the authors arguments and biases

How do you do a literature review? How do you analyze the validity of the author's arguments and/or biases?

  Discuss how supply and demand would be affected

Discuss how supply and demand would be affected under each of the four degrees of competition (pure competition, monopolistic competition, oligopoly, and monopoly). Give specific examples to support your response.

  Linear programming model-what is the optimal blend of foods

In order to ensure optimal health (and thus accurate test results), a lab technician needs to feed rabbits a daily diet containing a minimum of 24g of fat, 36g of carbohydrates, and 4g of protein. The rabbits should be fed 5 oz of food each day. Writ..

  Business law-about the cancellation policy

April 1, 2015, while Amy was working, Burt asked her to go to Tours, Inc. (Tours), a travel agency, and book a personal vacation trip for him in early June. He told Amy he wanted a 1-week, luxury all-inclusive (except air fare) vacation package at a ..

  Unchanging regardless of technological advances

Some tools of marketing have stayed basically the same over the years despite the advent of the internet and other technological advances, while others have changed immensely. Which marketing tools would you say will continue to be broadly applicable..

  Airways flies several daily flights-based on historical data

JetRed Airways flies several daily flights from Philadelphia to Chicago. Based on historical data, the flight on Wednesday evening before Thanksgiving is always sold-out.

  Discuss your planned strategy in e-procurement

You have recently assumed a senior management position at ServCis, LLC, a mid-sized Wisconsin-based company that manufactures and sells goods mostly to businesses. Discuss your planned strategy in e-procurement in terms of the goals to be accomplishe..

  Create a process chart and flow chart

Create a process chart/flow chart to map the process of taking a license plate at Department of Motor Vehicle. Here are the process details: You enter the office and take a number, then walk 50 feet to the waiting area. During the wait, you count add..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd