Assume that the following market model adequately describes the return-generating behavior of risky assets.
Rit = ai + ßiRmt + єit
Where Rit = the return for the ith asset at time t
And Rmt = the return on a portfolio containing all risky assets in some proportion, at time t
Rmt and єit are statistically independent
Suppose the following data are true.
Asset Bi E(Ri) Var(Ei)
A 0.7 8.41% 1.00%
B 1.2 12.06 1.44
C 1.5 13.95 2.25
Var(Rmt) = 1.21%
a. Calculate the standard deviation of returns for each asset.
B. Assume short selling is allowed.
i. Calculate the variance of return of three portfolios containing an infintite number of asset types A,B or C respectively.
ii. Assume Rf = 3.3% and Rm = 10.6%. Which asset will not be held by rational investors?
iii. What equilibrium state will emerge such that no arbitrage opportunities exists? Why?
The solution explains how to calculate the standard deviation of returs, the variance and the equilibrium stage
Romer's Theory deswcribed
1. List the main elements of the Roemer Model of a Health Services System.
2. Name at least two of the components of each of the five elements in Roemer's Model.
3.State managed and free market both operate through government, defining social classes, but not seeing need as different between any...however see attachment one about over-care. I don't agree that people with chronic illnesses get over cared for, but this attachment adds fuel to this very important topic of healthcare models that work universally, such as the NHS in the U.K.
4.oil wealth, and wealth of the nation as a whole
5.'rights, 'needs', 'health gain', 'access' and other non-economic concepts;
Market Failure 1, and 2 an economic failure based on Market Failure 1
In short, and this is quoted in the print above the first attachment:Dr. Milton I. Roemer first stated his "Law" in print in 1959 and 1961, most succinctly as: "A built bed is a filled bed." (Roemer, M.I. "Bed supply and hospital utilization: a natural experiment." Hospitals. 1961 Nov
1; 35:36-42.) Roemer's Law states that there is a direct correlation between capacity and utilization. With
the availability of third-party reimbursement, oversupply of resources, especially hospital beds and
specialist physicians, induces its own demand for their overusage. This principle became the major impetus
behind comprehensive health planning and certificate of need regulation. [Dartmouth Atlas,pdf]