Davita spencer is a manager at half dome asset management. she can generate an alpha of 2% a year up to $100 million. after that her skills are spread too thin, so she cannot add value, and her alpha is zero. half dome charges a fee of 1% per year on the total amount of money under management (at the beginning of each year). assume that there are always investors looking for positive alpha and no investor would invest in a fund with a negative alpha. in equilibrium, that is, when no investor either takes out money or wishes to invest new money, a. what alpha do investors in davita’s fund expect to receive? b. how much money will davita have under management? c. how much money will half dome generate in fee income?

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration