EBK MODERN PRINCIPLES OF ECONOMICS
EBK MODERN PRINCIPLES OF ECONOMICS
3rd Edition
ISBN: 8220106882856
Author: COWEN
Publisher: MAC HIGHER
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Chapter 30, Problem 11TPS

Subpart (a)

To determine

The change in the five measures of unemployment from September 2007 to September 2008.

Subpart (b)

To determine

Whether any of the alternate measures of unemployment indicate that the rise in the unemployment rate was larger than the official measure would indicate.

Subpart (c)

To determine

Whether any of the alternate measures indicate that the rise in the unemployment rate was twice as big as the official measure.

Subpart (d)

To determine

Which of the alternate measures indicates at first glance that the labor market is actually a little better than the official measure and also estimating the denominator of this value that makes this change smaller than the rest.

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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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