Questions and Answers of Marketing Strategy Planning

For a random variable X ∼ N(μ, σ2), the probability of realizing a value x outside the range μ ± 2σ is roughly 5%. What proportion of the market portfolio should an agent hold, if she is
Assume there are different risk-free rates for borrowing and lending, and Rb0 > RI0. Sketch the capital market curve graphically and explain what happens to the tangential portfolio.
Which expected return would an agent in the world of Problem 6.1 require to hold the market portfolio, if her risk aversion is ? = 1? Problem 6.1 Think of a world without the opportunity of
Think of a world without the opportunity of risk-free borrowing or lending. You can only hold money, which means saving is permitted, or invest in a portfolio of risky assets. Show that in this world
Convince yourself that the set K in Figure 5.2 left is not convex. Figure 5.2. K M
Imagine a financial market with one zero-coupon bond and one stock. The risk-free rate of interest over one period of time is r = 25% and the initial value of the stock is S0 = $10. There are two
Consider the payoff matrix Check if the financial market is complete, and whether or not any cyclical permutation of the security price form results in an arbitrage free market. (1 2 D= 3 (s] =
Show that the risk premium of a security with state contingent payoff |dn is given by Cov[M, dn]. Use the relation in the process. Cov[X, Y]= E[XY] – E[X\E[ Y]
Assume that von Neumann?Morgenstern-utility is a time separable functional of the form Show that the price of an arbitrary security can be written as expectation value where the random variable M
Assume the random variable W has expectation value E[W] = μ and variance Var[W] = σ2. Mean variance analysis postulates that expected utility increases with increasing μ, and decreases with
Show that hyperbolic absolute risk aversion with β = 0, in the limit γ → 1 specializes to Bernoulli’s logarithmic utility.
For the special class of utility functions u(w) = w ? be?aw, with a, b > 0, Bell (1988) suggested another measure of risk aversion. For this class, expected utility takes the form where the
Suppose you own wealth w and you are facing a potential loss l that may occur with probability p. There is an insurance company that offers protection against an arbitrary loss η at an actuarial
The St. Petersburg paradox is a coin flip game, where a fair coin is tossed successively, until heads occurs. If the first toss is heads, you win $1. If the first one is tails and the second one is
Check that this result complies with Laplace?s formula (3.37). (3.37) (-1)**+"mknMkn k+n, k+n n=1 k=1 " class="fr-fic fr-dii" style=""> det[M] = >(-1)**"mknMkn = >(-1)**+"mknMkn k+n, k+n n=1 k=1
Take the two-dimensional random vector |X to be normally distributed with covariance matrix ? What is the variance of Y = 1| X, with 1| = (11), and what does this correspond to? σ12 Σ Ισ12σ3,
One of the most prominent tools in statistics is linear regression. It can be stated as a linear vector model where |y contains the observed manifestations of the response variable, the matrix X
The matrix exponential of a square matrix M is defined in terms of its Taylor-series Prove that an alternative representation is the following: Mk eм k! k=0 eM = Ve^V-l with e^ etn II
Consider the complex vector space of periodic functions in the interval [0, 2?]. Show that the exponential Fourier-functions = ("A| ceinx V27 /2л
Show that the outer products |eken| for k, n = 1, 2 form a complete basis of the vector space IR2×2.
The outer product of a vector |a and a form b| is defined as Show that the sum of outer products over a complete set of orthonormal basis vectors with the corresponding set of orthonormal basis
Consider the hyperbolic coordinate transformation limited to the coordinate wedge a1 > 0 and ?a121, see Figure 3.13. How does the operation ofscaling a vector affect the hyperbolic radius ? and
Assume N ? Poi(?) is a Poisson-distributed random variable with probability mass function f(n) = e-??n/n! for n ? IN0. Consider a random variable X, with where Xn are independent and identically
Consider rolling a fair die, with X(ω) as the number of pips and the event A of throwing an even number. Show that the conditional expectation, given A, is greater than the unconditional
Calculate the natural filtration in the wheel of fortune example of problem 2.1, generated by the outcome hold? Problem 2.1 Consider the simplified version of a wheel of fortune, given in Figure 2.5.
Consider the simplified version of a wheel of fortune, given in Figure 2.5. Create a complete probability space as a model for one turn of the wheel. Assume that the wheel is fair in the same
Using the GoodBuy data set, add the ATS construct to the model examined in this chapter. Test the theoretical model that both ATS and ATM drive CS/D, which in turn drives Loyalty. Include a direct
Using the OLDSKOOL data, use cluster analysis to identify groups of respondents varying in their opinions on issues related to athletes in college sports today. Use the 17 items above to start.a. How
Presuming standardized direct effects are included, draw (or use Excel to draw) a graphical representation of moderator effects that would result from the following regression result: 5.0 + 03X –
This activity is a project that can be carried out in a team of two students. It provides an exercise in searching for data and building a model using the U.S. Census data (census.gov). Check for the
Take a look at the data below. X represents an Internet survey respondent’s rating of how satisfied they are with their Snapchat app and Y represents the respondent’s rating of how likely they
Input “Amazon.com” or “Apple” in an Internet search engine along with other key words that may lead you to research reports that describe some aspect of these mammoth companies marketing
1. The information provided here is not detailed enough for a formal report, but assume that you are making an informal report in a preliminary stage of the reporting process.Which of these findings
This activity can be used for the term long project.In the resources that accompany this book, you will find a Powerpoint file that contains a detailed outline for a research project. This file
The following table gives a football team?s season-ticket sales, percentage of games won, and number of active alumni for the years 1998?2015. a. Enter the data into an electronic file. b. Estimate
Using the retail data available in the resources for this chapter, examine the following research questions:(1) Verizon consumers have a more favorable attitude than do AT&T consumers.(2) Are
Use an online library service to find basic business research studies that report a “response rate” or number of respondents compared to number of contacts.You may wish to consult journals like
Look up at least five academic articles in an area of interest to you that involve survey research. Do they all discuss the sample and sample size? From any description about the sample provided, can
Use the survey flow feature in Qualtrics to set up an assignment of subjects to questions that ask each about their attitude toward either Instagram, Tumblr, Pinterest or Snapchat, which includes
Try to find two friends that know the same foreign language. Write ten Likert questions that measure how exciting a retail store environment is to shop in. Have one of your friends interpret the
Using Qualtrics, design an eight-question Internet survey that assesses how effective the introductory Marketing course at your school has been. Include a filter question that first asks respondents
Search the Internet to find out a little about Nando’s Chicken Restaurant. Design a Web-based survey with a five-item questionnaire assessing how consumers in your town would react to a Nando’s
Look for opportunities to participate in surveys online.Is the sponsor identified and if so, how might it influence responses? Comment on the surveys with respect to their ability to deliver error
Search the Internet for some online posts from consumers describing Walmart shopping experiences. An experience that amounts to a complaint qualifies as relevant. Make sure the descriptions contain
You have performed tax services for Mark Pruett, a U.S. citizen who is being transferred abroad by his employeL Mark's 2018 salary and allowances in Country M will be $210,000, which is substantially
Miami-based Florida Corporation manufactures electronic games that it has sold overseas for the past two yea rs. Its foreign operations are conducted primarily through two distributors in South
Allen Blay owns 100% of the stock in AB Corporation, organized ten years ago in California. AB operates a foreign branch in Country A. In the current yea r, AB reports $500,000 of taxable income from
Arrow, a U.S. corporation, annually sells one million starter motors to Bentley, a wholly owned foreign subsidiary organized in Country K. Bentley sells the starters as replacement parts through auto
Young Corporation conducts a business in both the United States and a foreign country. In each of the following scenarios, what is Young's worldwide (combined U.S . and foreign) tax rate relative to
Tien is a citizen of Country C, which does not have an income tax treaty with the United States. During the current year (2018), she is a nonresident alien for U.S. tax purposes and earns the
Dillon, a U.S. citizen, resides in Country K for all of 2018. Dillon is married and files a joint return. The following items pertain to his 2018 activities:Salary and allowances (other than for
In 2018, Stuart earns $275,000 of income in Country K and incurs and pays $43,805 of Country K income taxes. Determine the following amounts for Stuart: Foreign-earned income and allowable foreign
Fred, a U.S. citizen, arrives in Country K on July 15, 2016, and proceeds to a construction site in its oil fields. Once there, he moves into employer· provided housing where he is required to
Julia, a U.S . citizen, leaves the United States at noon on August 1, 2016, and arrives in Country Pat 8:00 a.m. the next day. She immediately establishes in Country P a permanent residence, which
Tucson, a U.S. corporation organized in Year 1, reports the following items for a three-year period.The foreign source and worldwide taxable income items are determined under U.S. law.a. What is
During the current year, Jackson, a U.S. corporation and accrual method taxpayer, engages in both U.S. and foreign business activities. All its overseas activities are conducted by a branch in
A U.S. manufacturer wants to conduct business through a foreign subsidiary organized in a low tax jurisdiction. How might it do so without being currently taxed on the subsidiary's foreign earnings
Explain how a nonresident alien is taxed in the year of arrival and departure if he or she arrived in the United States on July 1, 2016, and immediately established U.S. residency, and departs from
Tony, a U.S. citizen, uses the calendar year as his tax year. Tony was transferred to Foreign Country C on June 15, 2016, and he immediately became a resident of that country. His employer transfers
Roy Ritter died two years ago. Among the assets he owned were Ritter Ranch, a cattle ranch consisting of 12,220 acres in Texas. In accordance with Roy's will, the ranch along with stocks producing
In 2012, Francois Landry, resident of Louisiana, funded the Landry Trust. The trust instrument stated that the beneficiaries of the trust shall be all the children of Claudette Landry Mercier, who is
Care Cole died in 2016, and her will left her entire estate in equal shares to her two adult children, Calvin and Corrine. Both children anticipate being in the top income tax bracket for at least
Carla plans to create a trust and transfer to it oil and gas properties producing royalty income. She will transfer no other properties. The sole income beneficiary of the trust will be Carla's son,
Glorietta Trust is an irrevocable discretionary trust funded by Grant Glorietta. The discretionary income beneficiary for life is Grant's son, Gordon Glorietta (single). Gordon is a partner in a
Dana Dodson died October 31, 2017, with a gross estate of $6.7 million, debts of $200,000, and a taxable estate of $6.5 million. Dana made no taxable gifts. All of her property passed under her will
Joan died April 17, 2017. Joan's executor chose March 31 as the tax year end for the estate. The estate's only beneficiary, Kathy, reports on a calendar year. The executor of Joan's estate makes the
The following items are relevant for the first income tax return for the Ken Kimble Estate. Mr. Kimble, a cash method of accounting taxpayer, died on July 1, 2018.Dividends
Holly funded the Holly Marx Trust in January 2018. The entire trust income is payable to her adult son Jack for 20 years. At the end of the twentieth year, the trust assets are to pass to Holly's
Refer to Problem C:14-42. How would your answer change if instead the trust were a complex trust that makes no distributions in 2017 and 2018? Assume the trust earns $8,000 of corporate bond interest
A simple trust had a long-term capital loss of $10,000 for 2017 and a long-term capital gain of $15,000 for 2018. Its net accounting income and DNI are equal. Explain the tax treatment for the 2017
A simple trust has the following receipts and expenditures for 2018. The trust instrument is silent with respect to capital gains, and state law concerning trust accounting income follows the Uniform
Suellen Symmes died on January 15, 2018. Her estate elected a November 30 year end. The executor projects that the estate will receive interest income of $50,000 by November 30, 2018, and will have
A complex trust has taxable income of $29,900 in 2018. The $29,900 includes $5,000 of rental income and $25,000 of taxable interest income, reduced by the $100 personal exemption. The trust makes no
For the first five months of its existence (August through December 2018), the Estate of Amy Ennis had gross income (net of expenses) of $7,000 per month. For January through July 2019, the executor
Art Rutter sold an apartment building in May 2018 for a small amount of cash and a note payable with payments beginning in 2019. Principal and interest payments are due annually on the note in April
Assume the same facts as in Problem C:13-47 except that Yuji's will also provided for setting up a trust to be funded with $400,000 of property with a bank named as trustee. His wife is to receive
Matt Patterson died in early 2018 with a $4.5 million gross estate and no deductions other than a potential marital deduction. He bequeathed all his property to his spouse, Nancy, with the provision
Steve Silver, a new client, owns stock in HyTeche, Inc., which recently had an initial public offering. In early 2018, his stock is valued at $8 mill ion. His only other asset is $9 million of cash.
Gaylord Gunnison (GG) died January 13, 2018, and his gross estate consisted of three properties-cash, land, and stock in a public company. The amount of cash on the date of his death was $10.9 mill
Bonnie died on June 1, 2018, survived by her husband, Abner, and two sons, Carl and Doug. Bonnie's only lifetime taxable gift was made in October 2015 in the taxable amount of $6.25 million. She did
Giovanni died in 2018 with a gross estate of $13.9 million and debts of $30,000. He made post-1976 taxable gifts of $100,000, valued at $80,000 when Giovanni died. His estate paid state death taxes
Elaine died on May 1, 2018. Her gross estate consisted of the fol lowing items: Cash
Joseph Jernigan died in 2018 with a taxable estate of $4.1 million. He was survived by his spouse Josephine and several children. He made taxable gifts of $100,000 in 1974 and $650,000 in 2000. The
Maria Martinez died in 2018, survived by her spouse, Sergio, and two adult children. Her gross estate, all of which passed under her will, was valued at $17.2 million. She had Sec. 2053 deductions of
Bess, a widow, died in October 2018. Her gross estate, which totaled $12.5 million, included a $100,000 life insurance policy on her life that she gave away in 2016. The taxable gift that arose from
Will, a bachelor, died in 2018. At that time, his sole asset was cash of $15 million. Assume no debts or funeral and administration expenses and no charitable bequests. His gift history was as
Sam Snider died February 14, 2017, survived by his spouse Janet and several children. Sam had not made any taxable gifts. Sam's gross estate was $7 million. In each of the following independent
Assume the same facts as in Problem C:13-48 and that before Yuji's death in 2018 his wife already owned property valued at $300,000. Assume that each asset owned by each spouse increased 8% in value
When Yuji died in March 2018, his gross estate was valued at $15 million. He owed debts tota ling $300,000. Funeral and administration expenses were $12,000 and $120,000, respectively. The marginal
Ten years ago, Art purchased land for $60,000 and immediately titled it in the names of Art and Bart, joint tenants with right of survivorship. Bart paid no consideration. In 2018, Art died and was
Twelve years ago, Latoya transferred property to an irrevocable trust with a bank trustee. Latoya named AI to receive the trust income annually for life and Pat or Pat's estate to receive the
John died in 2018. What amount, if any, was included in his gross estate in each of the following situations:a. In 1997, John created a revocable trust, funded it with $400,000 of assets, and named a
In December 2015, Curt and Kate elected gift splitting to report $16,228,000 of gifts of stocks Curt made to Curt, Jr. Each paid gift taxes of $1,068,000 by spending his or her own funds. Kate died
Val died on May 13, 2018. On July 3, 2015, she gave a $400,000 life insurance policy on her own life to son Ray. Because the value of the policy was relatively low, the transfer did not cause any
Sue died on May 3, 2018. On October 1, 2015, Sue gave her son Tom land valued at $7,014,000. Sue applied a unified credit of $2,117,800 against the gift tax due on this transfer. On Sue's date of
Mary died on April 3, 2018. As of this date, Mary's gross estate was valued at $16.5 million. On October 3, Mary's gross estate was valued at $15.8 million. The estate neither distributed nor sold
Beth died on May 3, 2018. Her executor elected date-of-death valuation. Beth's gross estate included, among other properties, the items listed below. What is the estate tax value of each item?a.
Jeung Hong, a widower, died in March 2018. His gross estate was $14.5 million and, at the time of his death, he owed debts of $60,000. His will made a bequest of $200,000 to his undergraduate alma
Your firm has prepared the estate tax return (Form 706) for the Estate of Belinda Baker, a widow who died January 13, 2018. Besides substantial amounts of cash, mostly in certificates of deposit, she
George Tanner died October 2, 2017, survived by his son Thomas and his daughter Gigi Tanner Stewart and her children, Sam and Cindy. George was the sole stockholder of Tanner, Inc., a C corporation.

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