User Account

All Pages

The cpi data or the gdpd data

Assignment Help Microeconomics
Reference no: EM13334499

Suppose Jean Splicer, an investor, buys $500,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $530,000.
Assume the value of the CPI at the date of Jean's purchase was 190 and rose by the sale  date one year later to 200 while the value of the GDP Deflator was 120 at the time of her   purchase and rose to 125 by the date she sold her shares. What was Jean's real rate of  return on this investment?
B) Explain why you used either the CPI data or the GDPD data in your answer to part A.

Reference no: EM13334499

Questions Cloud

How much money will be invested in stock x and stock y : Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 9.0 percent. If your goal is to create a portfolio with an expected return of 10.42 percent
What is the interest for one month at an 20 percent apr : sidney took a 775 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances.
How can this deficiency be addressed : How can this deficiency be addressed? What suggestions would you offer to make more users security competent?
Determine the current yield on a corporate bond investment : Determine the current yield on a corporate bond investment that has the face value of 7,000, pays 12 percent interest, and has a current price of 68.30.
The cpi data or the gdpd data : Explain why you used either the CPI data or the GDPD data in your answer to part A.
Compliance program to prevent and detect criminal conduct : Mulcare Corp. started a compliance program to prevent and detect criminal conduct within the company and had specific, high-level officers in charge of overseeing the program. The company effectively communicated the program to its employees and moni..
How much work must be done to move the object : An object is subject to a restoring force F = 8x3, How much work must be done to move the object from x = 0.10 to x = 0.47 m
Compute the cost of debt before taxes and after taxes : A company issues 15-year, $1,000 par-value bonds, with a coupon rate of 5%. The bonds are sold for $619.70. The tax rate is 30%. Compute the cost of debt before taxes and after taxes.
What is the force exerted by the muscle : A soccer player extends her lower leg in a kicking motion by exerting a force with the muscle above the knee in the front of her leg. What is the force exerted by the muscle if its effective perpendicular lever arm is 1.80 cm

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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