- Suppose an investor buys $100,000 of shares in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $110,000. If the value of the CPI at the date of purchase was 160, and rose by the sale date to 168, what was the investor's real rate of return on this investment? - Why is it appropriat
(Expenditure Approach to GDP) Given the following annual information about a hypothetical country, answer questions a through d. Billions of Dollars Personal consumption expenditures $200 Personal Taxes 50 Exports 30 Depreciation 10 Government Purchases 50 Gross private domestic investment 40 Imports 40 Governm
The expansion of the government debt could result in: A) a decline in savings. B) an increase in interest rates. C) a decline in investment. D) a reduction in the capital stock. E) all of the above.
The assets of a particular investment fund are: Stock A with an Investment of $200,000 and a beta of 1.50. Stock B with an Investment of $300,000 and a beta of -0.50. Stock C with an Investment of $500,000 and a beta of 1.25. Stock D with an Investment of $1,000,000 and a beta of 0.75. The required market rate of return is
Classify the various categories of 'gross private domestic investment'. Explain what is meant by each briefly. (The Prof. said, " I am not referring to 'net investment' and 'depreciation' when I say various categories.)