Suppose that you sell short 500 shares of xtel, currently selling for $40 per share, and give your broker $15,000 to establish your margin account.
a. if you earn no interest on the funds in your margin account, assume that xtel pays no dividends. so what will be your rate of return after one year if xtel stock is selling at: (negative value should be indicated by a minus sign. round your answers to 2 decimal places.)
b. if the maintenance margin is 25%, how high can xtel’s price rise before you get a margin call?
c. redo parts (a) and (b), but now assume that xtel also has paid a year-end dividend of $1 per share. the prices in part (a) should be interpreted as ex-dividend, that is, prices after the dividend has been paid. (negative value should be indicated by a minus sign. round your answers to 2 decimal places.)

In three to four sentences, explain the effect of a price ceiling on the quantity of a good and who this intervention intends to assist

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]