Stock a has a beta of 0.8, stock b has a beta of 1.0, and stock c has a beta of 1.2. portfolio have 1/3 of its value invested in each of these stocks. each stock has a standard deviation of 25%, and their returns are independent of one another, ie., the correlation coefficients between each pair of stock is zero. assuming the market is in equilibrium, which of the following statements is correct? a. portfolio p's expected return is greater than the expected return on stock c. b. portfolio p's expected return is greater than the expected return on stock bc. portfolio p's expected return is equal to the expected return on stock ad. portfolio p's expected return is less than the expected return on stock be. portfolio p's expected return is equal to the expected return on stock b.

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces

In the 1970s, kmart used blue light specials to encourage customers to flock to a particular department having a temporary sale. a spinning blue light activated for approximately 30 seconds, and then an in-store announcement informed shoppers of the special savings in the specific department. over time, loyal kmart shoppers learned to flock to the department with the spinning blue light before any announcement of special savings occurred. if kmart was employing classical conditioning techniques, what role did the spinning blue light play?