Zero turbulence airline provides air transportation services between los angeles, california, and kona, hawaii. a single los angeles to kona round-trip flight has the following operating statistics: fuel $7,000 flight crew salaries 3,200 airplane depreciation 3,480 variable cost per passenger—business class 140 variable cost per passenger—economy class 120 round-trip ticket price—business class 800 round-trip ticket price—economy class 300 it is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, e. assume that the overall product mix is 10% business class and 90% economy class tickets. total number of seats at break-even seats b. how many business class and economy class seats would be sold at the break-even point? business class seats at break-even seats economy class seats at break-even seats

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be: