Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 15, Problem 7PA

Subpart (a):

To determine

Monopoly pricing and price elasticity of demand.

Subpart (b):

To determine

Monopoly pricing and price elasticity of demand.

Subpart (c):

To determine

Maximize total revenue.

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1. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate fund, and the third is a (riskless) T-bill money market fund that yields a rate of 8%. The probability distributions of the risky funds have the following characteristics: Standard Deviation (%) Expected return (%) Stock fund (Rs) 20 30 Bond fund (RB) 12 15 The correlation between the fund returns is .10.
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Can you show me the answers for parts a and b? Thanks.
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