Based on current dividend yields and expected capital gains, the expected rates of return on portfolios a and b are 12% and 16%, respectively. the beta of a is 0.7, while that of b is 1.4. the t-bill rate is currently 5%, whereas the expected rate of return of the s& p 500 index is 13%. the standard deviation of portfolio a is 12% annually, that of bis 31%, and that of the s& p 500 index is 18%.

a. calculate the alphas for the two portfolios. (round your answers to 1 decimal place.)

b. if you could invest only in t-bills and one of these portfolios, which would you chose?

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.

Dr. sperry, a biologist, is using excel to track growth rates of different populations of bacteria. she has a very complex formula in one cell. it begins with “round”. dr. sperry would like to see exactly how excel’s calculation reached the final rounded value that she sees in the cell. what could dr. sperry do to best understand how the calculation was made? try different formulas on her own until she reaches the value shown in excel click on the evaluate formula button in the formulas tab and then click “step in” select the cell and then look at the formula in the formula field of the ribbon remove “round” from the formula in order to see the actual value before rounding

What would not cause duff beer’s production possibilities curve to expand in the short run? a. improved manufacturing technology b. additional resources c. increased demand