g Assets with random rates of return r1, r2 have expected rates ¯r1 = 1, ¯r2 = 2, variances σ1 2 = 1, σ2 2 = 3 and covariance σ1,2 = 1. Consider portfolios consisting of weights w1 = 1 − α and w2 = α of these assets. a) Find weights, expected rate of return ¯rMVP, and volatility σMVP for the minimum variance portfolio. b) Make a sketch in the σ, r¯ plane of the portfolio curve. Label the asset points (σ1, r¯1), (σ2, r¯2), the minimum variance point (σMVP, r¯MVP), and the efficient frontier. c) An individual with utility function U(y) = 16y−y 2 and with unit initial wealth constructs a portfolio consisting of fractions 1 − α and α of these assets. Find the maximum over α of the expected utility E[U(1 + rp(α))], where rp(α) is the portfolio rate of return. d) Calculate σp, ¯rp for the portfolio corresponding to the maximum expected utility, and show that this portfolio is efficient. g

Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event. inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded. required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)

You work as the sales manager for a company that sells office supplies to businesses of all sizes. because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on paper, pencils, pens, post-it notes, and other office supplies from the manufacturers. when reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. when you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?