You hear on the news that the s& p 500 was down 2.5 % today relative to the risk-free rate (the market's excess return was negative 2.5 % ). you are thinking about your portfolio and your investments in zynga and proctor and gamble. a. if zynga's beta is 1.2, what is your best guess as to zynga's excess return today? b. if proctor and gamble's beta is 0.6, what is your best guess as to p& g's excess return today?

Your take on decision making process

Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.

conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?