Using the Treynor-Black model, you identified an optimal active portfolio that has an alpha, beta, and firm-specific risk of %, , and %, respectively. At this time, the market risk premium is % and the market portfolio risk (standard deviation) is %. What is the Sharpe ratio of the optimal risky portfolio? Enter your answer as a number, rounded to the nearest 0.001.

The slope of the budget constraint represents the ___ while the slope of the indifference curve represents the ___:

Compared to free trade, the change of Econland total surplus (including producer plus consumer plus government revenue) due to the tariff in question 13 equals

What is the Nash equilibrium?

Use Alya’s indifference curves above to answer the following questions. Suppose that Alya only consumes pizza and coke. and furthermore spends all of her income on on these goods. Her current income level is $40, the price per slice of pizza is $4 and the price of a can of coke is $2. The graph below shows some of Alya’s indifference curves as well as some budget constraints. It is your job to identify which budget constraint(s) you have to use in each question. Use this information to answer the following questions.

If Carmel and Haggith do trade with each other,

Under what assumptions will the long-run supply curve for the widget industry be perfectly elastic (i.e. perfectly flat)?. (i) The same technology is available to all firms. (ii) One firm has a patent on a technology that is superior to what other firms have access to. (iii) There is a legal limit on the number of firms that can be in the industry. (iv) There are no barriers to entry in the industry. (v) Input prices do not change as the industry expands

A monopolist faces the market environment illustrated below. Use the following graph to answer questions 34 – 37.

Relative to autarky, free trade results in a change in Econland domestic consumer surplus equal to

Sonya consumes soda and fish nuggets. In the graph below, you can find the graphical representation of Sonya’s indifference curves as well as three different budget constraints. It is your job to identify which budget constraint(s) to use in each question. Use this information to answer questions 32-33