MGEC72H3 Study Guide - Prime Rate, Real Interest Rate, Discovery Digital Networks

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEC72H3
• Professor: Victor Barac

Document Summary

= d income + capital gain (or loss) = ,784 (i from 6200 to 6784) Note: for each dollar invested will receive 1. 35c and for each dollar invested will get 8c in gain. = [(12. 25 22. 65)2 + (23. 85 22. 65)2 + (51. 69 . Geometric method = [(1+r1) x (1+r2) x x (1+rn)]1/n 1 = 21. 48% E[ra] = . 20(. 06) + . 60(. 07) + . 20(. 11) = 7. 60% E[rb] = . 20( . 2) + . 60(. 13) + . 20(. 33) = 10. 40% 2 =. 20(. 06 . 0760)2 + . 60(. 07 . 0760)2 + . 20(. 11 . 0760)2 = . 000304; 2 =. 20( . 2 . 1040)2 + . 60(. 13 . 1040)2 + . 20(. 33 . 1040)2 = . 029104; b = E[rp] = . 30(. 3) + . 40(. 45) + . 30(. 33) = . 3690. E[rp] = . 30(. 12) + . 40(. 10) + . 30(. 15) = . 1210. E[rp] = . 30(. 01) + . 40( . 15) + . 30( . 05) = . 0720. E[rp] = . 30( . 06) + . 40( . 30) + . 30( . 09) = . 1650. Any price below this will cause ur margin below 40% subject to margin call.