Mr. leghorn lives next door to mr. fudd. during hunting season, mr. fudd likes to shoot rabbits in his backyard, which activity he values at $900. the noise from the shooting disturbs mr. leghorn and prevents him from taking afternoon naps, which he values at $500. if mr. leghorn has the legal right to stop mr. fudd from hunting, the socially optimal outcome is for:

a. mr. fudd to pay mr. leghorn between $500 and $900 to continue hunting.
b. mr. fudd to pay mr. leghorn less than $500 to continue hunting.
c. mr. fudd to stop hunting.
d. mr. leghorn to pay $500 or less to get mr. fudd to stop hunting.

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Which of the following services will be provided by a full-service broker but not by a discount broker? i. research of potential investment opportunities ii. purchase and sale of stock at your request iii. recommendation of investments a. i and iii b. ii only c. iii only d. i, ii, and ii

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan