A restaurant is being planned that will require an investment of $150,000 in equipment by the owner. The following shows forecasted variable cost percentages, and identifiable known costs (considered fixed and semifixed costs at start-up). a. What is the breakeven level of sales revenue for the restaurant? Prepare a contribution margin income statement to confirm … Read more
5. Nominal interest rates and yield curves Economic forecasters predict that the rate of inflation will hold steady at 2% per year indefinitely. The table below shows the nominal interest rate paid on Treasury securities having different maturities. Maturity Nominal rate of return 3 months 5% 2 years 6 5 years 8 10 years 8.5 … Read more
Inspector Sgt. Ambercromby of Scotland Yard. It is believed, although never proven, that Bonnie murdered her first husband, Lefty, by poisoning the tepid brandy they drank together on their first anniversary. Lefty was unaware she had coated her glass with an antidote before she filled both glasses with the poisoned brandy. Bonnie married her second … Read more
Read through all the problems at the end of this chapter. Make up and solve an original problem based on the material in this chapter.(a) Use real data and reactions from the literature. (b) Make up a reaction and data.(c)Use an example from everyday life (e.g., making toast or cooking spaghetti). In preparing your original … Read more
(a) The irreversible elementary reaction 2A → B takes place in the gas phase in an isothermal tubular (plug-flow) reactor. Reactant A and a diluent C are fed in equimolar ratio, and conversion of A is 80%. If the molar feed rate of A is cut in half, what is the conversion of A assuming … Read more
Example 6-2: Membrane Reactor Wolfram (i)Starting with all values of KC, k, CT0, and kC in the middle range (KC = 0.25, k = 2.1, CT0 = 0.52, and kC = 1.06, all in default units), vary each parameter individually and describe what you find. Note and explain any maximum or minimum values of your plots down the … Read more
Short calculations on the algae ponds. (a) If the pond is initially seeded with 0.5 mg/dm3 of algae, how long will it take the algae to reach a cell density (i.e., concentration) of 200 mg/dm3? Sketch a rough plot of rg and CC over time. (b) Suppose the algae limit the sun’s penetration significantly even before the concentration … Read more
Consider a strategy with five years of daily IID Normal returns. The best trial out of ten yields an annualized Sharpe ratio of 2, where the variance across the annualized Sharpe ratios is 1. a What is the expected maximum Sharpe ratio? Hint: Apply the False Strategy theorem. b After one trial, what is the … Read more
Consider an investment strategy that buys S&P 500 futures when a price moving average with a short lookback exceeds a price moving average with a longer lookback. a Generate 1,000 times series of strategy returns by applying different combinations of i Short lookback ii Long lookback iii Stop-loss iv Profit taking v Maximum holding period … Read more
Rather than a discussion this week, this will be a reflection. That simply means it’s private and only I will see it. Given the nature of the topic I thought people might be more comfortable that way. So, what’s your fondest memory? Describe it in as much detail as you wish. Then … Read more