Same maturity and face value

1. (15pts) Mr. Weiss just bought a zero-coupon bond issued by Risky Corp. for $870, with $1000 face value and one year to mature. He believes that the market will be in expansion with probability 0.9 and in recession with probability 0.1. In the event of expansion, Risky Corp. can always repay the debt. In the event of recession, the company would fail to meet its debt obligation. The bondholders would recover nothing and completely lose their investment, should the firm default. A zero-coupon government bond with the same maturity and face value is selling at $952.38. Assume that the government never defaults. The expected value and the standard deviation of the return of the market portfolio are 15% and 30%, respectively. Risky Corp’s bond return has a correlation of 0.67 with the market portfolio return. Assume that interest is compounded annually.

(a) Suppose Mr. Weiss holds the bond to maturity. What will be his holding period return if Risky Corp. does not default? What will be his holding period return if the firm defaults?

(b) What is the expected return of the Risky Corp. bond? Is the bond risky or riskfree? Explain.

(c) What is the YTM of the government bond? Is this YTM the riskfree rate? Explain.

(d) Compare the expected return of the Risky Corp. bond with the riskfree rate. Would a risk-averse investor buy the Risky Corp. bond at $870? Explain.

(e) The standard deviation of the return of the Risky Corp. bond is 34.48%. What is the beta of the bond? What would be the equilibrium expected return of the Risky Corp. bond if the CAPM holds? Does Mr. Weiss overvalue or undervalue the bond relative to the CAPM?

(f) Suppose Mr. Weiss changes his mind and sells his Risky Corp. bond. He invests in a portfolio that allocates 50% of the money on the market portfolio, and the other 50% on the government bond. What are the expected value and the standard deviation of his portfolio return? Is his portfolio efficient? Explain.

Gaining full profit from working

I need a 150 word reply to each of the following two forum posts made by my classmates (300-words total) (the origional forum question[1]  is at the bottom):

Reply #1

A profitable motel may need to shut down in the long run if the land on which it is located became extremely valuable due to surrounding economic development. When the land around the motel increased with the development, it also increased the land around that land. This will increase property taxes and could even alter building zones. According to Perez in 2021 a hotel that had been successful for more than 22 years had to close due to the fact that the hotel is not able to prevent the increase in its lease. The hotel wouldn’t be able to afford the increase in the lease due to the local area becoming extremely valuable. For this company they realized that the marginal revenue was going to be lower than the marginal variable cost. This means that rooms prices would be lower than needed for the changes in the lease, which would mean they need to shut down.

For example, if you build your car wash in the middle of field, the permit for that would more than likely be authorized. However, if you live a heavily populated city, the zoning will have changed, and you may not be able to have that business there. There could be several reasons, one may be the fact that it is not zoned for that type of business, or it could be because the chemicals that are used to wash the cars are not authorized to be around homes within 200 feet.

The motel may also decide to shut down if the land could be sold at a price in which the owner would like. The motel owner could then take the funds to purchase other motels in different areas, so he could expand. The city plan could also include new motels will be becoming available in the future around that area and looking at costs may decide that this motel wouldn’t be able to compete with the new motels long term.

Reference:

Perez, L. (2021). West Hollywood’s The Standard Hotel Shutting Down. Retrieved from https://www.hollywoodreporter.com/lifestyle/style/west-hollywoods-the-standard-hotel-shutting-down-4120141/

Reply #2

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?

A profitable motel might shut down due to the amount of total profit they could gain from selling. The owner could sell the motel to help set themselves up for retirement or because they are entrepreneurs.  A few of the costs involved in making the decision to shut down are total cost which comes from adding the variable cost and the fixed cost together. The reason you would want to know total cost is because it would allow you to see how much a profit you could gain after paying off all expenses that you had incurred along the way.

 

[1] Original Forum Question::

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?

Determine a concept of a review

For the term project, you are required to pick a current economic topic that relates to the material we have covered or will cover in this course. You will research and find an article that covers the topic you have chosen. You can use an article online or offline from any reputable source. You will write up a review of the article and integrate course concepts into your review. Please make sure you both summarize the article and discuss how it relates to the course.

Complete this project in a Microsoft Word document in APA format. Your work will automatically be submitted to Turnitin for plagiarism review. Please make corrections as required.  Please note that a minimum of 700 words for your project is required.

  • attachment

    Syllabus.pdf

    For the term project, you are required to pick a current economic topic that relates to the material we have covered or will cover in this course. You will research and find an article that covers the topic you have chosen. You can use an article online or offline from any reputable source. You will write up a review of the article and integrate course concepts into your review. Please make sure you both summarize the article and discuss how it relates to the course.

    Complete this project in a Microsoft Word document in APA format. Your work will automatically be submitted to Turnitin for plagiarism review. Please make corrections as required.  Please note that a minimum of 700 words for your project is required.

    • Syllabus.pdf

Illustrate a shift in supply and/or demand.

  • Find one or two news articles from the Internet that illustrate a shift in supply and/or demand. The article(s) need to illustrate at least two of the four graphs. This may require two articles. The article(s) must be recent (within the last six months), and MUST NOT be from an encyclopedia or reference website that discusses demand and supply.
  • DO NOT use blogs.
  • The best articles are about changes in the price and/or sales of a particular product. You then have the opportunity to demonstrate your understanding of supply and demand shifts as you explain the changes in price and quantity experienced by the product you choose.  RECOMMENDATION: READ THE SAMPLE PROJECT: Under the Getting Started link.
  • Summarize the article. (Do not quote the article, but explain it as if you were telling someone about it. If you do use direct quotes or paraphrases, remember that citations and references are required.)  If you use more than one article, then citations are required.
  • Explain which graph in our collection – A, B, C, or D – illustrates the shift that you identify by describing the change in equilibrium quantity.  Remember to illustrate the shifts shown in at least two of the four graphs.
  • Some articles may describe a situation where both curves shift.  This is not common but it is possible.
  • Do use paragraphs in your post. And do remain focused on what is in the article.
  • Provide a full URL link to the article along with an APA-formatted reference to the article at the bottom of your submission.
  • Important: This is a Microeconomic course. Do not choose an article discussing Macroeconomic issues: Inflation, unemployment, trade deficit, government budget deficit, etc.

Med-Arb and Arb-Med

  1. Suppose that you are asked to choose between Med-Arb and Arb-Med for your dispute. Which would you prefer? Explain your choice.
  2. Based on your experience as an online student, do you think that online ADR is a viable model? Why or why not? Which types of ADR would be best suited for online offering? To whom would such offerings be appealing, and why? Explain your answers.
  3. Suppose that you are asked to choose between Med-Arb and Arb-Med for your dispute. Which would you prefer? Explain your choice.
  4. Based on your experience as an online student, do you think that online ADR is a viable model? Why or why not? Which types of ADR would be best suited for online offering? To whom would such offerings be appealing, and why? Explain your answers.
  5. Suppose that you are asked to choose between Med-Arb and Arb-Med for your dispute. Which would you prefer? Explain your choice.
  6. Based on your experience as an online student, do you think that online ADR is a viable model? Why or why not? Which types of ADR would be best suited for online offering? To whom would such offerings be appealing, and why? Explain your answers.

Components of monetary policy and what tools are available to manipulate portions of the macroeconomy.

Select 5 of the following questions. Answer in complete sentences.  Use concise, accurate writing to explain your answers.  Use a separate sheet(s) of paper for your answers.  Make sure to number your answers.

1. Briefly describe the primary components of monetary policy and what tools are available to manipulate portions of the macroeconomy.

2. Briefly describe the primary components of fiscal policy.  Provide three examples of fiscal policy and its influence on the macroeconomy.

3. Explain the concept of “crowding out” and how that can negatively affect the U.S. economy in the future.  Make sure to include the role of government expenditures and investments in your explanation.

4. How does the large size of the U.S. governmental deficit and overall debt present a macroeconomic challenge in the upcoming years?  Provide three examples of tough choices in the near future.

5. How does velocity have a role in the overall performance of an economy?  Make sure to include the role of the money multiplier effect in your explanation.

6. What are the advantages and disadvantages of a strong dollar and a weak dollar?  Make sure to cite the proportion of the US import-export variables in relation to its overall GDP in your explanation.

7. How are “stickiness” and Keynesianism related?  Cite several examples that explain the connection.  Also, make sure to explain how conditions may either be similar or different from the days of Keynes to our present-day challenges.

U.S. governmental deficit and overall debt

Select 5 of the following questions (20% each). Answer in complete sentences.  Use concise, accurate writing to explain your answers.  Use a separate sheet(s) of paper for your answers.  Make sure to number your answers.

  1. Briefly describe the primary components of monetary policy and what tools are available to manipulate portions of the macroeconomy.
  1. Briefly describe the primary components of fiscal policy.  Provide three examples of fiscal policy and its influence on the macroeconomy.
  1. Explain the concept of “crowding out” and how that can negatively affect the U.S. economy in the future.  Make sure to include the role of government expenditures and investments in your explanation.
  1. How does the large size of the U.S. governmental deficit and overall debt present a macroeconomic challenge in the upcoming years?  Provide three examples of tough choices in the near future.
  1. How does velocity have a role in the overall performance of an economy?  Make sure to include the role of the money multiplier effect in your explanation.
  1. What are the advantages and disadvantages of a strong dollar and a weak dollar?  Make sure to cite the proportion of the US import-export variables in relation to its overall GDP in your explanation.
  1. How are “stickiness” and Keynesianism related?  Cite several examples that explain the connection.  Also, make sure to explain how conditions may either be similar or different from the days of Keynes to our present-day challenges.

Discussion: Monetary Policy

Discussion: Monetary Policy

Topic: Money

Question/Prompt:

Author Anna Schwartz writes this about money: “The U.S. money supply comprises currency—dollar bills and coins issued by the Federal Reserve System and the Treasury—and various kinds of deposits held by the public at commercial banks and other depository institutions such as savings and loans and credit unions.” (Schwartz, n.d.)

In this threaded discussion, complete the following:

1) Discuss the concept of money. Begin by defining the functions of money and explain how currency meets these functions.

2) Explain the concept of bartering.  Explain whether bartering does or does not meet all of the functions of money.

3) Historically, a number of things other than coin and currency have been used as money. Using outside research, provide an example of something else that has been used as money, and explain when and where it was used. Do not use the examples given in the text.

4) Think about how Scripture influences our attitudes and actions towards money. Which Bible verses related to money challenge you the most? Which biblical concepts have helped form how you think about and act with your money? Explain.

***PLEASE READ***

Discussion Post must be at least 300 words

For each thread, students must support their assertions with at least 3 scholarly citations in APA format. Each reply must incorporate at least 1 scholarly citation in APA format. Any sources cited must have been published within the last five years. Acceptable sources include newspapers, periodicals, journals, textbooks, credible news websites (NPR, BBC, etc.), and the Bible. Sources such as Wikipedia, About.com, thebalance.com, book reviews, and blogs are prohibited.

Dealing with Risk and Uncertainty

Case Study: Dealing with Risk and Uncertainty

Overview

Select a company of your choice, one that has been dealing with risk and uncertainty within the last six months, and write a 6–8 page paper in which you identify risk and identify comprehensive ways to should minimize its negative impacts and address risk while improving profitability.

Instructions

  • Evaluate a company’s recent actions (within the last six months) dealing with risk and uncertainty.
  • Offer advice for improving risk management.
  • Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
  • Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
  • Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.
  • Examine the organizational structure of your company and suggest ways it can be changed to improve the overall profitability.

Please use citations dated back no more than 5 year

  • Use at least five quality academic resources in this assignment. One reference must be about the risk and uncertainty the company has faced in the last six months.

Absolutely no plagiarism 

Please follow all directions given 

Please follow the writing guidelines below

Be thorough and precise and please answer all subtopics in its fullest

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    Writingstandardsrequirements.docx

International Project Management

Chapter 16 discusses ideas centered around International Project Management, but even more broadly, International Business as a whole. The chapter references several factors that need to be considered when selecting a host country for a project or expansion of an MNC (Multi-National Corporation). Some of these factors include environmental, political, legal, economic, cultural, geography, and security. For this week’s discussion, please select 2 countries (outside of the US) and conduct research about things a United States-based MNC should know regarding each country in regard to the factors below. For example, if you select Germany and Italy, do research about the following that could affect business dealings:

  • Environmental factors
  • Political factors
  • Legal factors
  • Economic factors
  • Cultural factors
  • Geographical factors
  • Security factors

Please be sure to expand upon at least 6 out of 7 of the above factors for each submission.

Chapter 16 discusses ideas centered around International Project Management, but even more broadly, International Business as a whole. The chapter references several factors that need to be considered when selecting a host country for a project or expansion of an MNC (Multi-National Corporation). Some of these factors include environmental, political, legal, economic, cultural, geography, and security. For this week’s discussion, please select 2 countries (outside of the US) and conduct research about things a United States-based MNC should know regarding each country in regard to the factors below. For example, if you select Germany and Italy, do research about the following that could affect business dealings:

  • Environmental factors
  • Political factors
  • Legal factors
  • Economic factors
  • Cultural factors
  • Geographical factors
  • Security factors

Please be sure to expand upon at least 6 out of 7 of the above factors for each submission.