Questions and Answers of Financial Trading And Investing

1. Use the Taylor-Russell tables (see Appendix A ) to solve these problems by filling in the following table: Validity SR BR Success Ratio 0.25 0.20 0.30 0.55 0.70 0.80 0.20 0.70 0.80 0.10 0.50 0.50
2. Use the Naylor-Shine tables (see Appendix B ) to solve these problems by filling in the following table: Ixy Zxi 0.35 0.7019 0.22 0.47 -0.47 -0.30 z-baryi 0.65 0.65
1. Divide into four- to six-person teams and do either A or B, depending on feasibility.A. Choose a production job at a fast-food restaurant and, after making appropriate modifications of the
2. Jim Hill is the manager of subscriber accounts for the Prosper Company. The results of a job analysis indicate that Jim’s job includes four principal activities.A summary of Jim’s superior’s
3. Assume that an average SWAT team member is paid $55,000 per year. Complete the following questionnaire. Then use the results to estimate SD y by means of the superior equivalents technique.For
1. Build a high-level talent strategy. If working in a group, identify and analyze one member’s organization and identify a key strategic differentiator.Next, identify a critical role, skill, or
2. Identify an individual or role and build a succession plan for your own organization, or, if working in a group, choose one member’s organization to analyze. First, identify a specific role or
3. Working with data for one organization, estimate and plan for the organization’s risk due to retirements. First, identify the roles, capabilities, or business units you will analyze for risk. Be
1. Consolidated Industries, a 2,800-employee firm, is faced with a serious, and growing, absenteeism problem. Last year, total employee-hours lost to absenteeism came to 165,808. Of the total
2. Inter-Capital Limited is a 500-employee firm faced with a 3.7 percent annual absenteeism rate over the 1,960 hours that each employee is scheduled to work. About 15 percent of absentees are blue
3. As a management consultant, you have been retained to develop two alternative programs for reducing employee absenteeism at Consolidated Industries (question 1). Write a proposal that addresses
1. Ups and Downs Inc., a 4,000-employee organization, has a serious turnover problem, and management has decided to estimate its annual cost to the company. Following the formulas presented in
1. Ups and Downs Inc., a 4,000-employee organization, has a serious turnover problem, and management has decided to estimate its annual cost to the company. Following the formulas presented in
2. The following data shows turnover costs for the 4,000 employees of Hulakon Inc., for one year. In any given year, 12 percent of the employees can be expected to quit.Employee Group Number of
3. You are a leader in HR for a regional manufacturing organization with several different plants across five states. Despite producing the same goods using the same equipment, some of them are
4. You are CEO of a public-relations company. You have been thinking about how to drive productivity in your organization. Based on what you have learned, what strategies might you adopt?
1. Your boss is skeptical about claims that workplace flexibility is important to managers as well as employees. What evidence can you provide to offset this line of thinking?
2. What is a workplace flexibility program? What are some examples?
4. Why is workplace flexibility particularly important to professional employees?
5. Describe some of the key barriers to wider implementation of workplace flexibility programs.
6. Develop a strategy for informing the debate over whether to invest in workplace flexibility programs. What cautions would you build into your game plan?
9. How do workplace flexibility programs relate to organizational performance?
1. Use the software to solve these problems by filling in the following table: Validity SR BR Success Ratio 0.25 0.20 0.30 0.55 0.70 0.80 0.20 0.70 0.80 0.10 0.50 0.50 0.55 0.50 0.50
2. Using the Brogden-Cronbach-Gleser continuous variable utility model, what is the net gain over random selection (ΔU overall, and per selectee) given the following information?Quota for selection:
3. Given the following information on two selection procedures, and using the Brogden-Cronbach-Gleser model, what is the relative difference in payoff (overall and per selectee) between the two
4. The Tiny Company manufactures components for aerial drones. Most of the work is done at the 2,000-employee Tiny plant in the Midwest.Using the instructions provided for the global-estimation
5. Jim Hill is the manager of subscriber accounts for the Prosper Company. The results of a job analysis indicate that Jim’s job includes four principal activities. A summary of Jim’s
1. You are given the following information regarding the CAP test for clerical employees (clerk-2s) at the Berol Corporation:Average tenure as a clerk-2: 7.26 years Number selected per year: 120
2. Referring to Exercise 1, suppose that after consulting with the chief financial officer at Berol, you are given the following additional information: variable costs are 0.08, taxes are 40 percent,
3. The Top Dollar Co. is trying to decide whether to use an assessment center to select middle managers for its consumer products operations.The following information has been determined: variable
1. Jane Burns, an HR analyst for Standard City, USA, knows that SDy for firefighters in her city is $31,000. The fire department has asked the city to provide training in team building for 500 of its
2. Suppose, in Exercise 1, that you have just read a meta-analysis of teambuilding studies and know that the cumulated estimate of dt is 0.45.Compute an expected utility for the program and compare
3. With regard to Exercise 2, suppose that the discount rate is 10 percent, and variable costs are –0.10. The city is not taxed. How do these factors affect the estimate of expected utility that
4. Pilgrim Industries, a 2,000-employee firm with 400 managers, holds 40 days of off-site meetings per year. Outside consultants develop and conduct the meetings, and, on average, 20 managers attend
5. Pilgrim’s CEO has heard about the remarkable quality of “telepresence”web-based conferencing systems, and she has asked you to prepare a per-person, per-day cost comparison of an off-site
When Everyone Is Reducing Employee Health Investments, Is It Smart to Invest More ?
5. Pilgrim’s CEO has heard about the remarkable quality of telepresence web-based conferencing systems, and she has asked you to prepare a per-person, per-day cost comparison of an off-site meeting
4. Pilgrim Industries, a 2,000-employee firm with 400 managers, holds 40 days of off-site meetings per year. Outside consultants develop and conduct the meetings, and, on average, 20 managers attend
3. With regard to Exercise 2, suppose that the discount rate is 10 percent and variable costs are –0.10. The city is not taxed. How do these factors affect the estimate of expected utility that you
2 . Suppose, in Exercise 1, that you have just read a meta-analysis of team-building studies and know that the cumulated estimate of dt is 0.45. Compute an expected utility for the program and
1. Jane Burns, an HR analyst for Standard City, USA, knows that SD y for firefighters in her city is $28,000. The fire department has asked the city to provide training in team building for 500 of
3. The Top Dollar Co. is trying to decide whether to use an assessment center to select middle managers for its consumer products operations. The following information has been determined: variable
2 . Referring to Exercise 1, suppose that after consulting with the chief financial officer at Berol, you are given the following additional information: variable costs are –0.08, taxes are 40
1. You are given the following information regarding the CAP test for clerical employees (clerk-2s) at the Berol Corporation:Average tenure as a clerk-2: 7.26 years Number selected per year: 120
5 . You are a management consultant whose task is to do a utility analysis using the following information regarding secretaries at Inko, Inc. The validity of the Secretarial Aptitude Test (SAT) is
4. Given the following information on two selection procedures, and using the Brogden-Cronbach-Gleser model, what is the relative difference in payoff (overall and per selectee) between the two
3. Using the Brogden-Cronbach-Gleser continuous-variable utility model, what is the net gain over random selection (ΔU overall and per selectee), given the following information?Quota for selection:
Software that calculates answers to one or more of the following exercises can be found at http://hrcosting.com/hr/ .1. Consolidated Industries, an 1,800-employee firm, is faced with a serious—and
Software that calculates answers to one or more of the following exercises can be found at http://hrcosting.com/hr/ .1. Ups and Downs, Inc., a 4,000-employee organization, has a serious turnover
1 . Sobriety, Inc., a marketer of substance abuse programs, is concerned about the cost of alcohol abuse among its own employees. Based on the following data, what is the productivity cost associated
2. The following data shows turnover costs for the 4,000 employees of Hulakon, Inc., for one year. In any given year, 12 percent of the employees can be expected to quit.A total of 120 employees
1. Your boss has asked you for evidence that shows the link between employee attitudes such as job satisfaction, commitment, and engagement, and both individual and organizational outcomes. In other
2. Develop a logic diagram that shows the common and unique outcomes that employee satisfaction, commitment, and engagement might be related to.
3 . What is SYSCO’s value-profit chain? Explain each link in the model and why it is important in understanding how management practices affect employee satisfaction-engagement, customer
4 . You have read that SYSCO’s value-profit chain serves as a business model for the company. As a senior manager, respond to the following questions:What implications might such a model have for
5 . You are the CEO of a public relations company. You have just read about the 5-STAR management model in the value-profit chain and want to implement it in your company. Develop a detailed strategy
1. Your boss is skeptical about claims that work-life fit is important to managers as well as employees. What evidence can you provide to offset this line of thinking?
2 . What is a work-life program? What are some examples?
3. Describe the wage penalty associated with “opting out” of the workforce.
4. Why is work-life fit particularly important to professional employees?
5. Describe some of the key barriers to wider implementation of work-life programs.
6 . Develop a strategy for informing the debate over whether to invest in work-life programs. What cautions would you build into your game plan?
7. Explain: The concept of “flexibility” reflects a broad spectrum of possible work arrangements.
8. What key features are critical to making decisions about whether to provide options for increased flexibility in work arrangements?
9. How do work-life programs relate to organizational performance?
10. You are given the following data regarding the costs and payoffs from employersubsidized child-care arrangements in your 159-person professional services organization. Before offering childcare,
3 . Your firm is considering establishing an EAP, but it is unsure of which provider to select. Top management has asked you to assess the strengths and weaknesses of possible providers. Make a list
For each of the following three scenarios, would you rather:a. Receive $$100$ in one month or $$100$ in two months (most people prefer the former)?b. Be given an excellent meal at a nice
Consider an extension of the Exercise 21 from Chapter 8 concerned with the management of transactions exposure. The Smedley Company sold products to a Japanese client for ¥15,000,000. Payment is due
A stock currently selling for $$50$ has an annual returns variance equal to 0.36. The riskless return rate equals 0.08 per year. Under the binomial framework, what would be the value of nine-month
Consider the following exercise concerned with management of transactions exposure. The Smedley Company has sold products to a Japanese client for ¥15,000,000. Payment is due six months later.
Assume that $1 will purchase £0.60 and ¥108; that is, 1 U.S. dollar will purchase 0.6 UK pounds and 108 Japanese yen. Assume that goods in the three countries are identically priced after adjusting
Bond A, a three-year 7% issue, currently sells for 964.3227. Bond B is a two-year 8% issue currently selling for 1010.031. Bond C is a three-year 6% issue currently selling for 938.4063. Based on
Summarize how we learn and use essential skills for career success.
Suppose that the one-year spot rate y0,1 of interest is 5%. Investors are expecting that the one-year spot rate one year from now will increase to 7%; thus, the one-year forward rate y1,2 on a loan
The Designated Market Maker (DMM) on the NYSE has received the following bids, each to purchase 100 shares of XYZ stock at the market open: 9.98, 9.99, 10.00, 10.01, 10.02, and 10.03. She has
a. Some lawyers and economists have argued that legalizing insider trading would benefit markets by allowing insiders to disseminate information through their own trading activity. Prepare an
In response to the Financial Crisis of 2007-09, Congress passed major financial system regulatory reforms known as the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010. What were
Some people commented that the Securities Act of 1933 was based on the “sunlight theory of regulation,” which is analogous to others saying that “those who are forced to undress in public will
Now, let’s consider martingale and Markov processes in a standard Blackjack game. Cards are dealt one at a time from a standard 52-card randomly shuffled deck, and points are awarded to the lone
Let {rV, t ≥ 0} (the return on a stock) be an arithmetic Brownian motion.a. Suppose that rt is made up of two components, an instantaneous drift with expected value μ = .05 and a variance σ2 =
Historical percentage stock returns for the Robinson and Boyer Companies are listed in the following chart along with percentage returns on the market portfolio: Calculate the following based on the
Suppose a stock price St follows a Brownian motion process with an initial price of S0 = $50 and a variance per time period equal to σ2 = 4. What is the probability that the stock price is less
The following table represents outcome numbers, probabilities, and associated returns for Stock A:Thus, there are 10 possible return outcomes for Stock A.a. What is the probability associated with
The Nettles Company management projects an expected return level of 15% for the upcoming year. Assuming that returns are normally distributed with a standard deviation equal to. 1, what is the
Torre Company stock realized a 52-week high of $50 per share and a 52-week low of $25. What is the Parkinson extreme value estimate for variance for this stock? What would be the corresponding
Suppose that there is a six-month call currently trading for $8.20 while its underlying stock is currently trading for $75. Other details for this example are as follows:T = 0:5 rf = 0.10 c0 = 8.20 X
Santo Company stock currently trades for $50 per share. The current riskless return rate is 0.06. Under the Black-Scholes framework, what would be the standard deviations implied by six-month (0.5
In principle, simultaneous execution of transactions at known prices producing offsetting future cash flows makes arbitrage riskless. However, in practice, even in the simplest scenarios, such
There are two three-year bonds with face values equaling $1000. The coupon rate of bond A is 0.05 and 0.08 for bond B. A third bond C also exists, with a maturity of two years. Bond C also has a face
A $1000 face value bond is currently selling at a premium for $1200. The coupon rate of this bond is 12% and it matures in three years. Calculate the following for this bond assuming that its
Work through each of the calculations in Problem 2 assuming that interest payments are made semiannually.Data from Problem 2A $1000 face value bond is currently selling at a premium for $1200. The
A life insurance company expects to make payments of $30,000,000 in one year, $15,000,000 in two years, $25,000,000 in three years, and $35,000,000 in four years to satisfy claims of policyholders.
Find the duration of the following pure discount bonds:a. $1000 face value bond maturing in one year currently selling for $900.b. $1000 face value bond maturing in two years currently selling for
What is the relationship between the maturity of a pure discount bond and its duration?
What is the duration of a portfolio consisting of one of each of the bonds listed in problem 7?Data from problem 7Find the duration of each of the following $1000 face value coupon bonds assuming
Find durations and convexities for each of the following bonds:a. 10% five-year bond selling for $1079.8542 yielding 8%b. 12% five-year bond selling for $1000 yielding 12%
a. Use the duration (first-order) approximation models to estimate bond value increases induced by changes in interest rates (yields) to 10% for each of the bonds in Problem 10 above.b. Use the
Consider an example where we can borrow money today for one year at 5%; y0,1= 0.05. Suppose that we are able to obtain a commitment to obtain a one-year loan one year from now at an interest rate of
Suppose that the one-year spot rate y0,1 of interest is 5%. Investors are expecting that the one-year spot rate one year from now will increase to 6%; thus, the one-year forward rate y1,2 on a loan

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