Term Exam Sample Paper Essay Example for Free

Term Exam Sample Paper Essay This sample test should only be used as a guide to the styles of questions. The topics covered here are not exhaustive. Your revision should not be based on these set of questions only. The level of difficulty of this sample test is also NOT indicative of the level of difficulty of the actual test. The answers are provided at the end of the document. 1. A reasonable estimate of the annual standard deviation of return of the stock market would be? a. Less than 5 percent. b. Between 5 and 10 percent. c. Between 15 and 25 percent d. More than 30 percent e. Impossible to estimate 2. A project has an expected cash flow of $200, in year 1. The risk-free rate is 6%, the market rate of return is 16%, and the projects beta is 1. 5. Calculate the certainty equivalent cash flow for year 1. a. $175. 21 b. $164. 29 c. $228. 30 d. $212. 56 e. None of the above 3. Share X has a standard deviation of return of 10%, share Y has a standard deviation of return of 20%. The correlation coefficient between the shares is 0. 5. If you invest 60% of your funds in share X and 40% in share Y, what is the standard deviation of the portfolio? a. 10% b. 20% c. 12. 2% d. 14. 0% e. None of the above 4. Richard Rolls critique of tests of the capital asset pricing model is that: a. Given an efficient market portfolio the CAPM is tautology b. The market portfolio is not efficient c. You need to test the model using the market portfolio for all capital assets d. a and c e. a and b 5. The Template Corporation has an equity beta of 1. 2 and a debt beta of . 8. The firms market value debt to equity ratio is . 6. If it undertakes a new project with the same risk profile, what is the project beta (assuming zero tax rate)? a. 0. 70 b. 0. 72 c. 0. 96 d. 1. 04 e. 1. 05 6. Consider following data on three shares: Share Standard Deviation A 0. 6 B 0. 30 C 0. 20 Beta 1. 00 0. 80 1. 29 Assuming that you wished to minimise risk, you would select share if the share was held in on its own, and you would select share if the share was to be added to a portfolio. a b c d e 7. A, A A, B B, A B, C C, A In a portfolio of three different shares, which of the following is NOT possible? a. b. c. d. e. The ris k of the portfolio is less than the risk of each of the shares held in isolation. The risk of the portfolio is greater than the risk of one of the shares. The beta of the portfolio is less than the beta of each of the individual shares. The beta of the portfolio is greater than the beta of one of the individual shares betas. The standard deviation of the portfolio is greater than the standard deviation of the risk free asset. 8. You hold a diversified portfolio consisting of 20 different shares with $1,000 invested in each. The portfolio beta is equal to 1. 35. You have decided to sell all your holding of Edna Average Cosmetics Ltd which has a beta of 1. You will reinvest the proceeds in Aggressive Action Ltd which has a beta of 2. What is the new beta of the portfolio? a. b. c. d. e. 1. 35 2. 35 1. 45 1. 10 1. 40 9. A company is considering an investment in a new project. That project is best evaluated as though: a. b. c. d. e. It is a stand alone project independent of the company and so its risk is measured as variance. Its risk is adjusted to allow for diversification with the companies existing projects Its cost of capital is the weighted average cost of capital Its risk is evaluated as though it were traded in the capital markets None of the above 10 Is the portfolio with the minimum possible variance an efficient portfolio? a. b. c. d. e. Yes No Yes, but only for risk loving investors Yes, but only for investors who will not take any risk. Yes, but only for investors who are risk neutral. 11. For a two-stock portfolio, the maximum reduction in risk occurs when the correlation coefficient between the two stocks is: A) +1 B) 0 C) -0. 5 D) -1 E) None of the above 12. The variance or standard deviation is a measure of: A) Total risk B) Unique risk C) Market risk D) Bankruptcy risk E) None of the above 13. The risk of a well diversified portfolio depends upon the A) Market risk B) Unique risk of the securities included in the portfolio C) Number of securities in the portfolio D) Variance of the portfolio E) None of the above 4. A factor in APT is a variable that: A) Affects the return of risky assets in a systematic manner B) Correlates with risky asset returns in an unsystematic manner C) Is purely noise D) Affects the return of a risky asset in a random manner E) is generally not correlated with stock returns 15. A company has a cost of capital of 15%. However, it is introducing a new product that it considers to be a ver y risky endeavour to a well diversified investor. What can you say about the appropriate discount rate for the project? A) The rate used should be 15% B) The rate used should be lower than 15% C) The rate used should be greater than 15% D) Any rate between 12% and 18% is acceptable E) The rate should be the expected market return. 16 What has been the average annual rate of return in real terms for a portfolio of U. S. common stocks between 1900 and 2006? a. Less than 2% b. Between 2% and 5% c. Between 5% and 8% d. Greater than 8% e. Greater than 20% 17. Mega Corporation has the following returns for the past three years: 8%, 12% and 10%. Calculate the variance of the return and the standard deviation of the returns.

Rent Control: Pros And Cons :: Rent Control New York Argumentative Essays

Rent Control: Pros and Cons Rent control is the government imposition of price ceilings on rent for apartments in certain areas of a city. The goal is usually to protect the rights of the poor. Thus, in a rent controlled or rent stabilized building, the amount of rent will not increase as quickly as inflation. While the moral side of rent control may have some appeal, in the long run the disadvantages far outweigh the advantages. Those who argue in favor of rent control say that it is the only way to protect lower-income tenants from landlords who overprice, and from being forced to move out of a neighborhood because they cannot afford the rent. Limiting the price that a landlord can demand helps maintain a city's ethnic diversity and prevents the creation of slums on the outskirts of the main city. Another thing that proponents say is that by linking rent prices to apartment maintenance and material improvements, rent control actually improves the state of housing. Overall, they argue that the goals of rent control can be reached if they are administered in a careful and just way. The opponents, though, have both theoretical and practical experience on their side. First, rent control creates a market that is unfair for everyone. Since the rent is set at a lower than normal level, an unsatisfied demand is created. This increase in demand leads to an increase in the cost of rents in the uncontrolled sector. Thus, two types of rents are created: those that are unfairly cheap, and those that are unfairly expensive. Another problem that is created is that landlords who own rent controlled apartments are often not able to earn enough money to adequately maintain buildings. This leads to run-down, poor quality housing. In many cases, landlords lose so much money that they are not able to even pay the debt on the properties, and they abandon them. Both of these effects have been documented in New York and elsewhere, and go against the goals of rent control. Finally, rent control has the bad side effect of turning away new construction. This is because even if rent controls don't include new constructions, owners are afraid to build any new buildings if in a few years those too will be taken over by rent control. Rent control thus leads to less construction and an even greater unsatisfied demand. This, in turn, increases the rents of uncontrolled apartments even more. New constructions are also avoided because banks and insurance companies don't want to invest in areas where rent control is in effect, because they know that it is likely that landlords will not be able to Rent Control: Pros And Cons :: Rent Control New York Argumentative Essays Rent Control: Pros and Cons Rent control is the government imposition of price ceilings on rent for apartments in certain areas of a city. The goal is usually to protect the rights of the poor. Thus, in a rent controlled or rent stabilized building, the amount of rent will not increase as quickly as inflation. While the moral side of rent control may have some appeal, in the long run the disadvantages far outweigh the advantages. Those who argue in favor of rent control say that it is the only way to protect lower-income tenants from landlords who overprice, and from being forced to move out of a neighborhood because they cannot afford the rent. Limiting the price that a landlord can demand helps maintain a city's ethnic diversity and prevents the creation of slums on the outskirts of the main city. Another thing that proponents say is that by linking rent prices to apartment maintenance and material improvements, rent control actually improves the state of housing. Overall, they argue that the goals of rent control can be reached if they are administered in a careful and just way. The opponents, though, have both theoretical and practical experience on their side. First, rent control creates a market that is unfair for everyone. Since the rent is set at a lower than normal level, an unsatisfied demand is created. This increase in demand leads to an increase in the cost of rents in the uncontrolled sector. Thus, two types of rents are created: those that are unfairly cheap, and those that are unfairly expensive. Another problem that is created is that landlords who own rent controlled apartments are often not able to earn enough money to adequately maintain buildings. This leads to run-down, poor quality housing. In many cases, landlords lose so much money that they are not able to even pay the debt on the properties, and they abandon them. Both of these effects have been documented in New York and elsewhere, and go against the goals of rent control. Finally, rent control has the bad side effect of turning away new construction. This is because even if rent controls don't include new constructions, owners are afraid to build any new buildings if in a few years those too will be taken over by rent control. Rent control thus leads to less construction and an even greater unsatisfied demand. This, in turn, increases the rents of uncontrolled apartments even more. New constructions are also avoided because banks and insurance companies don't want to invest in areas where rent control is in effect, because they know that it is likely that landlords will not be able to

Politics and Administration Essay

Introduction 186, 207, 221? Power Struggle between the pro-democratic and pro-conservatism One of the reasons that led to such a tragic end for Tian’anmen Movement is the power struggle between the two camps of leaders, pro-democratic (Former General Secretary of the Chinese Communist Party, Zhao Ziyang) and pro-conservatism (Deng Xiao Ping). In 2009, a memoir was published based on audiotapes recorded by Zhao Ziyang, called Prisoner of the State: The Secret Journal of Premier Zhao Ziyang, he mentioned that he â€Å"didn’t want to be a General Secretary who opens fire on the people.† From this, we could clearly tell by that time, Zhao differed in opinion from Deng and other conservative leaders, like Li Peng on how to handle the student movement, i.e. whether to pursue a peaceful or a military solution. http://blog.foolsmountain.com/2009/06/03/tiananmen-1989-a-need-for-dialogue-20-years-later/ One very crucial turning point that we know is that by that time, the CCP General Secretary made a scheduled official visit to North Korea, which turned out to be a bad decision at the time of turmoil; this was because on April 26th CCP Central issued an editorial on â€Å"People’s Daily† in the absence of Zhao Ziyang, which was titled â€Å"Uphold the flag to unambiguously oppose any turmoil†, denouncing that the patriotic student movement as a turmoil ignited by an â€Å"extremely small handful of opportunists†. http://www.alliance.org.hk/64/6420/?page_id=521 According to Wu Jiaxiang, a former aide and a leading political scientist in Beijing, Zhao Ziyang, before leaving for North Korea on April 21st, had instructed that â€Å"no politburo meeting should be held in his absence† but other CCP leaders, likle Yang Shankun & Li Peng immediately convened a â€Å"CCP Expanded Poliburo Meeting†, then reported to Deng Xiaoping with meeting opinions, and then borrowed Deng Xiaoping’s mouth in stating that CCP â€Å"should not fear bloodshed†. And in Zhao Zhiyang’s self account, recorded by Yang Jisheng, he claimed that it was li Ximing & Chen Xitong who contacted Wan Li on the night of April 21st in request of convening a commissar meeting; that Wan Li relayed the info to Li Peng. Later, according to ________, Li Peng convened the meeting on the night of 24th, reported it to Deng Xiaoping on 25th, and was authorized to relay Deng’s opinions to communist cadres; and that Li Peng took advantage of the occasion to draft a newspaper commentary for publication on April 26th. By the time Zhao returned to China after the scheduled visit, he found it was just too late to remedy the situation as hostilities between the government and the people have been greatly aggravated. Other than the mis-communication over the People’s Daily’s editorial, we may gain further insights into the power struggle between the party leaders by taking a look at a previous document obtained by CNN and written by Bao Tong, a close aide to Zhao Ziyang, describing in detail the events leading up to the crackdown on student protests in Tiananmen Square on June 4, 1989. September 25, 1989 Comrade Hu Yaobang died on April 15, soon after which the student demonstrations began. I was extremely worried. Comrade Xiaoping pointed out in his speech on April 25 that the overwhelming priority in China is stability – I completely agreed with his point; I also wanted to maintain stability and prevent turmoil. Specifically, I wanted to make an effort to reduce tensions and to avoid precipitating the tension into clashes. The People’s Daily April 26th editorial, in my view, was harsh in language and lacked analysis and persuasiveness; I had my reservations about it. On May 19 and 20, the Central Committee announced the decision to send the military into Beijing and declare martial law; in my heart, I believed we made a terribly wrong move; I was afraid that we would be trapped in a very difficult situation, â€Å"riding a tiger, hard to get-off.† The Central Standing Committee collectively criticized Comrade Zhao Ziyang; I felt it was unfair. 1.1 – It was I who first informed Comrade Ziyang that the April 26th editorial had aggravated the confrontational mood of students and people who had previously taken a neutral position. Comrade Ziyang returned to Beijing from North Korea on April 30th. As soon as he returned, I reported to him as follows: Students have been demonstrating in the streets since April 27th. There were so many of them that it was impossible to blockade; there were also lots of onlookers following them. Some government officials sympathized with the demonstrations. There were signs that the incident was escalating and expanding; there were a great number of students and others who resented the April 26th editorial and believed that it was hostile towards them. I spoke about my opinion of the editorial: the positive side of the editorial was that it presented Comrade Xiaoping’s thoughts that Chin a must maintain stability and must not fall into turmoil. However, the editorial was written in a very harsh tone, did not adequately present reasons and lacked analysis. It also did not take into consideration the acceptance of people who were previously neutral. Since there were so many people who believed that the editorial was hostile to them, it was obvious that the editorial did not express its ideas clearly. Comrade Ziyang did not express his own opinions at that time. After a few days, he said to me: â€Å"It seems that there are flaws in the editorial.† Comrade Ziyang certainly formulated his opinions in his own way, but it was I who first reported to him about the editorial with this point of view. http://edition.cnn.com/2001/WORLD/asiapcf/east/04/22/tiananmen.document.01/ Students’ Uncollective Actions As discussed above, power struggle among the party leaders is one of the factors in leading to the unwanted tragedy of the June 4th Movement, but as I argue down below, the chaotic and unsystematic internal management of various student movements are by nature underlying factors to the tragedy. After the April 27 demonstration, the government commenced to open up dialogues with students, and the government seemed to take the initiative to adopt a more positive approach towards the student movement. The government’s willingness to concede and negotiate have lit up the hope for the majority of students that the entire student movement might come to a peaceful end(Source: Book) Yet, almost by the same time, the leadership and organization of the movement among the student leaders became â€Å"problematic†. Not only did the student movement organizations hold different points of views towards the movement strategies, some of the student leaders also paid no respect to organizational claims, and much often instead, they themselves acted on behalf of their organizations. One fine example would be the case of Zhou Yongjun, who was the president of Beijing Autonomous Federation. He helped organize another big demonstration on May 4. However, without any consent from his fellows and colleagues, he announced the end of class strike â€Å"without a clear resolution within the leadership†. http://www.standoffattiananmen.com/2009/04/people-of-1989-zhou-yongjun.html In order to better describe the dividing powers among the student leaders during the late stages of June 4th Movement, Zhao (2001) simply grouped the student demonstrators by that time into three groups, which are called respectively Dialogue Delegation Group, Beijing Students’ Autonomous Group and the so-called â€Å"charismatic group† http://site.ebrary.com.eproxy1.lib.hku.hk/lib/hkulibrary/docDetail.action?docID=10402626 As Zhao (2001) noted, the students that belonged to Dialogue Delegation Group were â€Å"eager for the coming dialogue with the government†. References Gonzales, Eduardo, L. and Gillespie, C.G. (1994). Presidentialism and Democratic Stability in Uruguay. In J. J. Linz and A. Valenzuela (Ed.), The Failure of Presidential Democracy, Comparative Perspective (pp. 151 – 178). Baltimore: The John Hopkins University Press Hanan, D. (2007). Presidentialism, parliamentarism and semi-presidentialism: Incentives and disincentives in achieving multiple democratic goals. Retrieved from http://djayadihanan.blogspot.com/2007/12/presidentialism-parliamentarism-and.html Linz, Juan J. (1994). The Failure of Presidential Democracy. The Case of Latin America. In J. J. Linz and A. Valenzuela (Ed.), Presidential or Parliamentary Democracy: Does it Make a Difference? (pp.7).Baltimore: The Johns Hopkins University Press Maeda, K. & Nishikawa M. (2006). Duration of Party Control in Parliamentary and Presidential Governments: A Study of Sixty-Five Democracies, 1950-1998. Retrieved from http://www.bsu.edu/web/mnishikawa/MaedaNishikawa2006CPS.pdf Mainwaring, S. (1993). Presidentialism, Multipartiism, and Democracy, The Difficult Combination. Comparative Political Studies, Vol. 26 No. 2 (pp. 198 – 228) Mainwaring, S. & Shugart, M. (1993). Juan Linz, presidentialism, and democracy: A critical appraisal. Retrieved from http://www.nd.edu/~kellogg/publications/workingpapers/WPS/200.pdf Power, Timothy and Mark J. Gasiorowski. (1997). Institutional Design and Democratic Consolidation in the Third World. Comparative Political Studies. Shugart, M. S., & Carey, J. M. (1992). Presidents and assemblies: constitutional design and electoral dynamics. Cambridge: Cambridge University Press. Valenzuela, A. (1994). Party Politics and the Crisis of Presidentialism in Chile: A Proposal for a Parliamentary Form of Government. In J. J. Linz and A. Valenzuela (Ed.), The Failure of Presidential Democracy – The Case of Latin America (pp. 93). Baltimore: The Johns Hopkins University Press

Essay on Ett4 Task 602.1.1-05 - 836 Words

ETT4 Task 602.1.1-05 The lesson on pan balance equations has a clear purpose. The teacher is aware of the state standard that all 8th graders are to take algebra. By introducing some pre-algebra skills to students now will allow them to build on this prior knowledge when they reach 8th grade. Mrs. Soglin clearly states the objective of today’s lesson at the beginning of class. She tells the class that today they are going to learn about equations and pan balance. She is also providing a visual aid of a pan balance to help the variation of learners in her class. Mrs. Soglin asks the class questions about pan balance to gain information about what background knowledge and experience the students have with the subject. Many†¦show more content†¦Even if they were wrong or needed more information to come to the correct conclusion. Her lesson used cooperative learning with indirect instruction. She asked a lot of probing questions and then would build on studentsâ⠂¬â„¢ response. She gave plenty of think time for the students to process what they were trying express to the class. If students didn’t give the correct response she would allow other students to help come up with the correct answer. The correct answer came from the students building on each others knowledge. Mrs. Soglin facilitated the discussion and added new information as needed. After the class discussion the students worked on their activity in pairs or groups and were engaged in self directing during this time. This lesson was geared toward many levels of learning ability and a variety of learning styles. Mrs. Soglin modeled the learning objective with the pan balance using the visual aid with the scale and a variety of different objects to be weighed. Then she provided additional information using the chalkboard. She engaged with the class by having an open discussion allowing the students to build on each other’s knowledge of the subject matter. She allowed for students to model for the class. When students were working in groups and pairs the higher level students helped lower level students. She also provided challenging problems at the end of the activity for those students who were ready and