Refer to the yield curve for November 1978. Assume the term premium .pdf

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Refer to the yield curve for November 1978. Assume the term premium on a 2-year security is 1%. Calcuate the expected interest rate on a one-year security one year in the future. 10.2 11- 1978 10.01% 10.0 9.8 9.6 9.42% a)9.4 2 9 g 9.2 9.0 8 8.84% 8 8.81% 8.759675 % 8.8 8.64% 8.6 1-yr r 2-y 5-yr10-yr20-yr 30-yr 3-mo 6-mo Maturity Solution 1.1042^2 = 1.1001*(1+r) by solving above eqn, Expected interest rate = 10.83%.

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Research the key facts and critical issues of BP before the BP oil spill of 2010 and summarize them here as they relate to the past conduct of the organization. Solution Before the oil spill of 2010, BP ignored big systematic hazards. The company was also not very strict regarding safety features and compliance when drilling rigs. For rigs which was contracted out, the company was less strict regarding safety. The xompany focused more on financial safety i.e. mitigating financial risks than on process safety i.e mitigating process safety risks. Clearly there was a management and leadership failure at BP..

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Research W.L Gore and develop a 3-5 page paper by answering the following questions: Briefly describe the organization. What makes W.L. Gore successful? What is unique about the way the company is led? What type of management style does CEO Terri Kelly use? Is this any different than the styles of the founders? What organizational beliefs and values does the Kelly hold important? Can this type of culture be sustained in the long run at W.L. Gore? Can this type of culture be implemented in the company you work(ed) for? Explain. Solution Briefly describe the organization. W.L. Gore is a technological firm that creates and innovates about medical devices. Core of its business is in four main areas: electronics, fabrics, industrial and medical products. The company was founded in 1958 by Wilbert (Bill) Lee Gore and his wife Genevieve (Vieve) Walton Gore in Newark.Bill Gore had spent 16 years with the DuPont Company in a number of technical positions that included fluoropolymer research when he decided to form his own company. While working in his basement, he set out to develop a process for insulating a series of parallel electrical wires using polytetrafluoroethylene (PTFE), a fluoropolymer discovered in 1938 by Roy Plunkett, a chemist with DuPont. In these four areas, you have Gore-Tex fabric is maybe W.L. Gore.

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Research another industry that has experienced globalization or may be a good candidate for globalization in the future and share your example with the class and explain why you selected the industry.Choose two countries (other than the U.S.) within the same region of the world. Assess the political risks, economic risks, and legal risks of each country. If you had to invest a large sum of money into one of these two countries, which one would it be? Why? Solution 1) An industry which I strongly believe will be a good candidate for globalization and will grow at an exponential rate is the recycling industry. These days we have so many choices for goods that we buy such as mobiles, TV, refrigerator, computers, clothes, furniture, cars, etc. The variety of goods available for us to use is enormous, also technological changes and fashion makes goods obsolete or out of fashion and hence this further drives up the demand for goods. We should also note that the factors of production (inputs) used for this goods are finite. Hence, today there is a very good potential for recycling industry to experience good growth and experience globalization. Recycling firms can make the best use of the used, obsolete goods and out of fashion goods for the benefit of society and save valuable/scarce economic factors of production/inputs. 2) Let me give you the example of India and Pakistan, which belong to the same region of the world: South Asia. Both the countries got independence and existence in the year 1947. Both the countries have almost the same type of people (human capital) and natural resources. On one hand we have India, a developing country attracting huge amounts of investment from foreign companies and different countries and making a good name of itself in the whole world; on the other hand we have Pakistan attracting a bad name in the world for all the possible wrong reasons and with a very poor economy and very low standard of living. We can assess the political, economic and legal risks of these two countries and make the following conclusions: A) Political risks: The government in India is very stable while in Pakistan is not. The government in India is elected by the people(is a democracy) while the government in Pakistan is also elected by the people of Pakistan, the chosen leaders have absolutely no power in controlling the country as the whole power lies with the army and the secret service of that nation. Also, it is very common for political leaders in Pakistan to get assassinated if they do not work as per the will of the country.

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Remote control programs have a number of disadvantages when they are used for remote local- area network (LAN) access. Which of the following disadvantages ismost difficult to manage? Telephone connect time not minimized Manually connect and disconnect operations Compatibility with host applications Network management time Solution d Network management time Limited network management for most remote control programs is a major disadvantage. Managing a large number of host workstations is difficult; each station must be managed individually. The remote control program that LAN access method uses does not implicitly minimize telephone connect time; although, it is possible to automate many operations using batch files or other programming mechanisms..

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relationship between sample size and size of Pearson correlation significance? Solution Sample size, n = g / m + 3; where m = log((1+r)/(1-r)) / 2 + (r/(2(n-1))) The formula is an iterative one, starting with n = log((1+r)/(1-r)) / 2 and substituting n into the formula with the one calculated until the difference of the two is less than one (1). but i cant understand the part where it state, Initial n = log((1+0.5)/(1-0.5)) / 2 = 0.5493.

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