Answer 9
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This document discusses methods for calculating inflation rates and real interest rates. It provides examples of calculating inflation rates for different years from 1929 to 1933 based on changes in price levels, all of which show deflation. Another example calculates a nominal interest rate of 9%, inflation rate of 7%, and real interest rate of 2%. A general expression is also derived for calculating the inflation rate over n years using the initial and final price levels.
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![Chapter 2 The Measurement and Structure of the National Economy 17
(c) The GDP deflator is the ratio of nominal GDP to real GDP. In the base year, nominal GDP
equals real GDP, so the GDP deflator is 1. In the current year, the GDP deflator is
$200,000/$178,000 = 1.124. Thus the GDP deflator changes by [(1.124/1) − 1] × 100% = 12.4%
from the base year to the current year.
(d) Nominal GDP rose 257%, prices rose 12.4%, and real GDP rose 218%, so most of the increase
in nominal GDP is because of the increase in real output, not prices. Notice that the quantity of
oranges quadrupled and the quantity of bananas more than doubled.
7. Calculating inflation rates:
1929–30: [(50.0/51.3) − 1] × 100% = −2.5%
1930–31: [(45.6/50.0) − 1] × 100% = −8.8%
1931–32: [(40.9/45.6) − 1] × 100% = −10.3%
1932–33: [(38.8/40.9) − 1] × 100% = −5.1%
These all show deflation (prices are declining over time), whereas recently we have had nothing but
inflation (prices rising over time).
8. The nominal interest rate is [(545/500) − 1] × 100% = 9%. The inflation rate is [(214/200) − 1] ×
100% = 7%. So the real interest rate is 2% (9% nominal rate − 7% inflation rate). Expected inflation
was only [(210/200) − 1] × 100% = 5%, so the expected real interest rate was 4% (9% nominal rate −
5% expected inflation rate).
9. (a) The annual rate of inflation from January 1, 2011, to January 1, 2013, is 10%. This can be found
by calculating the constant rate of inflation that would raise the deflator from 200 to 242 in two
years. This gives the equation (1 + π)(1 + π) = (242/200), which has the solution π = 10%.
An easy way to think about this question is this. A constant inflation rate of π raises the deflator
from 200 on January 1, 2011, to 200 × (1 + π) on January 1, 2012, and to 200 × (1 + π) × (1 + π) =
242 on January 1, 2013. So we need to solve the expression (1 + π)2
= 242/200.
(b) By similar reasoning, the inflation rate over the three-year period is (1 + π)3
= 266.2/200,
or π = 10%.
(c) We can derive a general expression in the same way:
1 + π = P1/P0
1 + π = P2/P1
⋅⋅⋅
⋅⋅⋅
⋅⋅⋅
1 + π = Pn/Pn–1
Multiplying all these lines together, we get:
(1 + π)n
= (P1/P0) × (P2/P1) × ⋅⋅⋅ × (Pn/Pn – 1) = Pn/P0
©2014 Pearson Education, Inc.](https://image.slidesharecdn.com/answer-9-211109151506/85/Answer-9-1-320.jpg)
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First, we need to forecast exchange rates for the next three years..pdf
First, we need to forecast exchange rates for the next three years.
Future rate (€/$) = Current rate (€/$) x (1 + rate (€)) / (1 + rate ($))
For year 1, rate = 0.500 x (1 + 7%) / (1 + 5%) = 0.510 and so on...
Now, convert the dollar cash flows in euro cash flows with the corresponding exchange rate.
Cash Flow ($) = Cash Flow (€) / rate (€/$)
NPV ($) = - CF0 + CF1 / (1 + r) + CF2 / (1 + r)^2 + CF3 / (1 + r)^3
= - 4,000,000 + 1,766,355 / (1 + 10%) + 1,733,339 / (1 + 10%)^2 + 1,700,940 / (1 + 10%)^3
= $316,230.720123€/$0.5000.5100.5190.529Cashflow (€)-€ 2,000,000€ 900,000€
900,000€ 900,000Cashflow ($)-$ 4,000,000$ 1,766,355$ 1,733,339$
1,700,940NPV$316,230.72
Solution
First, we need to forecast exchange rates for the next three years.
Future rate (€/$) = Current rate (€/$) x (1 + rate (€)) / (1 + rate ($))
For year 1, rate = 0.500 x (1 + 7%) / (1 + 5%) = 0.510 and so on...
Now, convert the dollar cash flows in euro cash flows with the corresponding exchange rate.
Cash Flow ($) = Cash Flow (€) / rate (€/$)
NPV ($) = - CF0 + CF1 / (1 + r) + CF2 / (1 + r)^2 + CF3 / (1 + r)^3
= - 4,000,000 + 1,766,355 / (1 + 10%) + 1,733,339 / (1 + 10%)^2 + 1,700,940 / (1 + 10%)^3
= $316,230.720123€/$0.5000.5100.5190.529Cashflow (€)-€ 2,000,000€ 900,000€
900,000€ 900,000Cashflow ($)-$ 4,000,000$ 1,766,355$ 1,733,339$
1,700,940NPV$316,230.72.
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First, we need to forecast exchange rates for the next three years..pdf
First, we need to forecast exchange rates for the next three years.
Future rate (€/$) = Current rate (€/$) x (1 + rate (€)) / (1 + rate ($))
For year 1, rate = 0.500 x (1 + 7%) / (1 + 5%) = 0.510 and so on...
Now, convert the dollar cash flows in euro cash flows with the corresponding exchange rate.
Cash Flow ($) = Cash Flow (€) / rate (€/$)
NPV ($) = - CF0 + CF1 / (1 + r) + CF2 / (1 + r)^2 + CF3 / (1 + r)^3
= - 4,000,000 + 1,766,355 / (1 + 10%) + 1,733,339 / (1 + 10%)^2 + 1,700,940 / (1 + 10%)^3
= $316,230.720123€/$0.5000.5100.5190.529Cashflow (€)-€ 2,000,000€ 900,000€
900,000€ 900,000Cashflow ($)-$ 4,000,000$ 1,766,355$ 1,733,339$
1,700,940NPV$316,230.72
Solution
First, we need to forecast exchange rates for the next three years.
Future rate (€/$) = Current rate (€/$) x (1 + rate (€)) / (1 + rate ($))
For year 1, rate = 0.500 x (1 + 7%) / (1 + 5%) = 0.510 and so on...
Now, convert the dollar cash flows in euro cash flows with the corresponding exchange rate.
Cash Flow ($) = Cash Flow (€) / rate (€/$)
NPV ($) = - CF0 + CF1 / (1 + r) + CF2 / (1 + r)^2 + CF3 / (1 + r)^3
= - 4,000,000 + 1,766,355 / (1 + 10%) + 1,733,339 / (1 + 10%)^2 + 1,700,940 / (1 + 10%)^3
= $316,230.720123€/$0.5000.5100.5190.529Cashflow (€)-€ 2,000,000€ 900,000€
900,000€ 900,000Cashflow ($)-$ 4,000,000$ 1,766,355$ 1,733,339$
1,700,940NPV$316,230.72.
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
pricing model.
PKZ stock is currently trading at 100. Over three-months it will either
go up by 6% or down by 5%. Interest rates are zero.
a. [25 marks] Using a two period binomial model to construct a delta-
hedged portfolio, price a six month European call option on PKZ
stock with a strike price of £105.
b. [3 Marks] Using your answer from the first part, together with the
put-call parity, price a put option on the same stock with same
strike and expiry.
COMP0041 SEE NEXT PAGE
2
2. This question is on the Binomial method in the limit δt → 0.
[40 Marks] The binomial model for pricing options leads to the for-
mula
V (S,t) = e−rδt [qV (US,t + δt) + (1 − q) V (DS,t + δt)]
where
U = eσ
√
δt, D = e−σ
√
δt, q =
erδt −D
U −D
.
V (S,t) is the option value, t is the time, S is the spot price, σ is volatil-
ity and r is the risk-free rate.
By carefully expanding U,D,q as Taylor series in δt or
√
δt (as appro-
priate) and then expanding V (US,t + δt) and V (DS,t + δt) as Taylor
series in both their arguments, deduce that to O (δt) ,
∂V
∂t
+
1
2
σ2S2
∂2V
∂S2
+ rS
∂V
∂S
− rV = 0.
COMP0041 SEE NEXT PAGE
3
3. This question is on probability and Monte Carlo
a. Consider theprobabilitydensity function p (x) fora randomvariable
X given by
p (x) =
{
µ exp (−µx) x ≥ 0
0 x < 0
where µ (> 0) is a constant.
i. [15 Marks] Show that for this probability density function
E
[
eθX
]
=
(
1 −
θ
µ
)−1
Hint: You may assume µ > θ in obtaining this result.
ii. [20 Marks] By expanding
(
1 −
θ
µ
)−1
as a Taylor series, show
that
E [xn] =
n!
µn
, n = 0, 1, 2, ....
iii. [15 Marks] Hence calculate the skew and kurtosis for X.
COMP0041 CONTINUED ON NEXT PAGE
4
b. [32 Marks] An Exchange Option gives the holder the right to
exchange one asset for another. The discounted payoff for this
contract V is
V = e−rT max (S1 (T) −S2 (T) , 0) .
The option price is then given by θ = E [V ] where
Si (t) = Si (0) e
(r−12σ
2
i )t+σiφi
√
t
for i = 1, 2, and φi ∼ N (0, 1) with correlation coeffi cient ρ.
Youmayassumethatauniformrandomnumbergenerator isavail-
able. Use a Cholesky factorisation method to show(
φ1
φ2
)
=
(
1 0
ρ
√
1 −ρ2
)(
x1
x2
)
,
where
(
x1
x2
)
is a vector of independent N (0, 1) variables and
has the same distribution as
(
φ1
φ2
)
.
Give a Monte Carlo simulation algorithm that makes use of anti-
thetic variates for the estimation of θ.
COMP0041 SEE NEXT PAGE
5
4. This question is on finite differences
a. [30 Marks] Consider a forward difference operator, ∆, such that
∆V (S) = V (S + h) −V (S) , (4.1)
where h is an infinitessimal. By introducing the operators
D ≡
∂
∂S
; D2 ≡
∂2
∂S2
show that
∆ ≡ ehD −1 (4.2)
where 1 is the identity operator. Hint: start by doing a Taylor
expansion on V (S + h) .
By rearranging (4.2) show that
D =
1
h
(
∆ −
∆2
2
+
∆3
3
−
∆4
4
+ O
(
∆5
))
.
Hence obtain the second order approximation for
∂V
...
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
pricing model.
PKZ stock is currently trading at 100. Over three-months it will either
go up by 6% or down by 5%. Interest rates are zero.
a. [25 marks] Using a two period binomial model to construct a delta-
hedged portfolio, price a six month European call option on PKZ
stock with a strike price of £105.
b. [3 Marks] Using your answer from the first part, together with the
put-call parity, price a put option on the same stock with same
strike and expiry.
COMP0041 SEE NEXT PAGE
2
2. This question is on the Binomial method in the limit δt → 0.
[40 Marks] The binomial model for pricing options leads to the for-
mula
V (S,t) = e−rδt [qV (US,t + δt) + (1 − q) V (DS,t + δt)]
where
U = eσ
√
δt, D = e−σ
√
δt, q =
erδt −D
U −D
.
V (S,t) is the option value, t is the time, S is the spot price, σ is volatil-
ity and r is the risk-free rate.
By carefully expanding U,D,q as Taylor series in δt or
√
δt (as appro-
priate) and then expanding V (US,t + δt) and V (DS,t + δt) as Taylor
series in both their arguments, deduce that to O (δt) ,
∂V
∂t
+
1
2
σ2S2
∂2V
∂S2
+ rS
∂V
∂S
− rV = 0.
COMP0041 SEE NEXT PAGE
3
3. This question is on probability and Monte Carlo
a. Consider theprobabilitydensity function p (x) fora randomvariable
X given by
p (x) =
{
µ exp (−µx) x ≥ 0
0 x < 0
where µ (> 0) is a constant.
i. [15 Marks] Show that for this probability density function
E
[
eθX
]
=
(
1 −
θ
µ
)−1
Hint: You may assume µ > θ in obtaining this result.
ii. [20 Marks] By expanding
(
1 −
θ
µ
)−1
as a Taylor series, show
that
E [xn] =
n!
µn
, n = 0, 1, 2, ....
iii. [15 Marks] Hence calculate the skew and kurtosis for X.
COMP0041 CONTINUED ON NEXT PAGE
4
b. [32 Marks] An Exchange Option gives the holder the right to
exchange one asset for another. The discounted payoff for this
contract V is
V = e−rT max (S1 (T) −S2 (T) , 0) .
The option price is then given by θ = E [V ] where
Si (t) = Si (0) e
(r−12σ
2
i )t+σiφi
√
t
for i = 1, 2, and φi ∼ N (0, 1) with correlation coeffi cient ρ.
Youmayassumethatauniformrandomnumbergenerator isavail-
able. Use a Cholesky factorisation method to show(
φ1
φ2
)
=
(
1 0
ρ
√
1 −ρ2
)(
x1
x2
)
,
where
(
x1
x2
)
is a vector of independent N (0, 1) variables and
has the same distribution as
(
φ1
φ2
)
.
Give a Monte Carlo simulation algorithm that makes use of anti-
thetic variates for the estimation of θ.
COMP0041 SEE NEXT PAGE
5
4. This question is on finite differences
a. [30 Marks] Consider a forward difference operator, ∆, such that
∆V (S) = V (S + h) −V (S) , (4.1)
where h is an infinitessimal. By introducing the operators
D ≡
∂
∂S
; D2 ≡
∂2
∂S2
show that
∆ ≡ ehD −1 (4.2)
where 1 is the identity operator. Hint: start by doing a Taylor
expansion on V (S + h) .
By rearranging (4.2) show that
D =
1
h
(
∆ −
∆2
2
+
∆3
3
−
∆4
4
+ O
(
∆5
))
.
Hence obtain the second order approximation for
∂V
...
Macroeconomics Data Calculations
Here are the slides from the macroeconomics data calculations short videos that we recorded ahead of the June 2018 A Level economics exam.
Running head RISK REDUCTION .docx
Running head: RISK REDUCTION 1
RISK REDUCTION 4
Risk reduction
Paul Grasso
CSU
Unit 6 Project EMS Risk Reduction
Risk reduction
Complete a cost vs. benefit analysis report for your risk reduction program.
Cost-benefit analysis refers to a technique that is used in the comparison of the total costs that are incurred in a certain project or a program with the benefits, and it uses monetary units as the common metric. The costs that would be incurred in the implementation of a risk-reduction program includes the total cost of the activity including both the direct and the indirect costs as well as the costs of the potential risks that are likely to arise (Pearce, Atkinson, & Mourato, 2006). The cost depends on the approach of the program, and it looks into all the activities which are conducted as part of the systematic analysis and in the planning process including research. Additional expenses regarding money, time and other resources are considered to be more reasonable from the perspective of the willingness of the members of the public to incur expenses because these costs to a great extent aids in the reduction of the level or costs associated with the risks
In the implementation of a risk reduction program, benefits refer to the advantages that the organization is likely to accrue as a result of the implementation. The benefits include all the direct as well as the indirect revenues and the intangible benefits such as increased level of productivity due to factors such as the improvement in morale and safety of the employee’s and also an increase in the level of sales as a result of the customer’s goodwill. Lots of benefits are derived from the use of additional resources to inhibit risks from taking place.
Cost-benefit analysis aids in the calculation of the benefit or the net cost that is associated with a certain program. A lot of care should be taken in the process of cost-benefit analysis to ensure that neither cost nor benefits are underestimated or overestimated. Before the implementation of the risk reduction program, one should compare the aggregate cost and benefits to ensure that the benefits of implementation outweigh the cost. A program is said to be rational if the costs are less than the benefits and in case of this, it can thus be easily put forward. In the case that the costs are greater than the benefits, a review of the project should be done to increase the benefits or decrease the cost so that the program can be made viable (Quah, & Toh, 2012).
References
Pearce, D., Atkinson, G. & Mourato, S. (2006). Cost-benefit analysis and the environment : recent developments. Paris: Organisation for Economic Co-operation and Development.
Quah, E. & Toh, R. (2012). Cost-benefit analysis : cases and materials. Milt ...
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Similar to Answer 9
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
pricing model.
PKZ stock is currently trading at 100. Over three-months it will either
go up by 6% or down by 5%. Interest rates are zero.
a. [25 marks] Using a two period binomial model to construct a delta-
hedged portfolio, price a six month European call option on PKZ
stock with a strike price of £105.
b. [3 Marks] Using your answer from the first part, together with the
put-call parity, price a put option on the same stock with same
strike and expiry.
COMP0041 SEE NEXT PAGE
2
2. This question is on the Binomial method in the limit δt → 0.
[40 Marks] The binomial model for pricing options leads to the for-
mula
V (S,t) = e−rδt [qV (US,t + δt) + (1 − q) V (DS,t + δt)]
where
U = eσ
√
δt, D = e−σ
√
δt, q =
erδt −D
U −D
.
V (S,t) is the option value, t is the time, S is the spot price, σ is volatil-
ity and r is the risk-free rate.
By carefully expanding U,D,q as Taylor series in δt or
√
δt (as appro-
priate) and then expanding V (US,t + δt) and V (DS,t + δt) as Taylor
series in both their arguments, deduce that to O (δt) ,
∂V
∂t
+
1
2
σ2S2
∂2V
∂S2
+ rS
∂V
∂S
− rV = 0.
COMP0041 SEE NEXT PAGE
3
3. This question is on probability and Monte Carlo
a. Consider theprobabilitydensity function p (x) fora randomvariable
X given by
p (x) =
{
µ exp (−µx) x ≥ 0
0 x < 0
where µ (> 0) is a constant.
i. [15 Marks] Show that for this probability density function
E
[
eθX
]
=
(
1 −
θ
µ
)−1
Hint: You may assume µ > θ in obtaining this result.
ii. [20 Marks] By expanding
(
1 −
θ
µ
)−1
as a Taylor series, show
that
E [xn] =
n!
µn
, n = 0, 1, 2, ....
iii. [15 Marks] Hence calculate the skew and kurtosis for X.
COMP0041 CONTINUED ON NEXT PAGE
4
b. [32 Marks] An Exchange Option gives the holder the right to
exchange one asset for another. The discounted payoff for this
contract V is
V = e−rT max (S1 (T) −S2 (T) , 0) .
The option price is then given by θ = E [V ] where
Si (t) = Si (0) e
(r−12σ
2
i )t+σiφi
√
t
for i = 1, 2, and φi ∼ N (0, 1) with correlation coeffi cient ρ.
Youmayassumethatauniformrandomnumbergenerator isavail-
able. Use a Cholesky factorisation method to show(
φ1
φ2
)
=
(
1 0
ρ
√
1 −ρ2
)(
x1
x2
)
,
where
(
x1
x2
)
is a vector of independent N (0, 1) variables and
has the same distribution as
(
φ1
φ2
)
.
Give a Monte Carlo simulation algorithm that makes use of anti-
thetic variates for the estimation of θ.
COMP0041 SEE NEXT PAGE
5
4. This question is on finite differences
a. [30 Marks] Consider a forward difference operator, ∆, such that
∆V (S) = V (S + h) −V (S) , (4.1)
where h is an infinitessimal. By introducing the operators
D ≡
∂
∂S
; D2 ≡
∂2
∂S2
show that
∆ ≡ ehD −1 (4.2)
where 1 is the identity operator. Hint: start by doing a Taylor
expansion on V (S + h) .
By rearranging (4.2) show that
D =
1
h
(
∆ −
∆2
2
+
∆3
3
−
∆4
4
+ O
(
∆5
))
.
Hence obtain the second order approximation for
∂V
...
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
pricing model.
PKZ stock is currently trading at 100. Over three-months it will either
go up by 6% or down by 5%. Interest rates are zero.
a. [25 marks] Using a two period binomial model to construct a delta-
hedged portfolio, price a six month European call option on PKZ
stock with a strike price of £105.
b. [3 Marks] Using your answer from the first part, together with the
put-call parity, price a put option on the same stock with same
strike and expiry.
COMP0041 SEE NEXT PAGE
2
2. This question is on the Binomial method in the limit δt → 0.
[40 Marks] The binomial model for pricing options leads to the for-
mula
V (S,t) = e−rδt [qV (US,t + δt) + (1 − q) V (DS,t + δt)]
where
U = eσ
√
δt, D = e−σ
√
δt, q =
erδt −D
U −D
.
V (S,t) is the option value, t is the time, S is the spot price, σ is volatil-
ity and r is the risk-free rate.
By carefully expanding U,D,q as Taylor series in δt or
√
δt (as appro-
priate) and then expanding V (US,t + δt) and V (DS,t + δt) as Taylor
series in both their arguments, deduce that to O (δt) ,
∂V
∂t
+
1
2
σ2S2
∂2V
∂S2
+ rS
∂V
∂S
− rV = 0.
COMP0041 SEE NEXT PAGE
3
3. This question is on probability and Monte Carlo
a. Consider theprobabilitydensity function p (x) fora randomvariable
X given by
p (x) =
{
µ exp (−µx) x ≥ 0
0 x < 0
where µ (> 0) is a constant.
i. [15 Marks] Show that for this probability density function
E
[
eθX
]
=
(
1 −
θ
µ
)−1
Hint: You may assume µ > θ in obtaining this result.
ii. [20 Marks] By expanding
(
1 −
θ
µ
)−1
as a Taylor series, show
that
E [xn] =
n!
µn
, n = 0, 1, 2, ....
iii. [15 Marks] Hence calculate the skew and kurtosis for X.
COMP0041 CONTINUED ON NEXT PAGE
4
b. [32 Marks] An Exchange Option gives the holder the right to
exchange one asset for another. The discounted payoff for this
contract V is
V = e−rT max (S1 (T) −S2 (T) , 0) .
The option price is then given by θ = E [V ] where
Si (t) = Si (0) e
(r−12σ
2
i )t+σiφi
√
t
for i = 1, 2, and φi ∼ N (0, 1) with correlation coeffi cient ρ.
Youmayassumethatauniformrandomnumbergenerator isavail-
able. Use a Cholesky factorisation method to show(
φ1
φ2
)
=
(
1 0
ρ
√
1 −ρ2
)(
x1
x2
)
,
where
(
x1
x2
)
is a vector of independent N (0, 1) variables and
has the same distribution as
(
φ1
φ2
)
.
Give a Monte Carlo simulation algorithm that makes use of anti-
thetic variates for the estimation of θ.
COMP0041 SEE NEXT PAGE
5
4. This question is on finite differences
a. [30 Marks] Consider a forward difference operator, ∆, such that
∆V (S) = V (S + h) −V (S) , (4.1)
where h is an infinitessimal. By introducing the operators
D ≡
∂
∂S
; D2 ≡
∂2
∂S2
show that
∆ ≡ ehD −1 (4.2)
where 1 is the identity operator. Hint: start by doing a Taylor
expansion on V (S + h) .
By rearranging (4.2) show that
D =
1
h
(
∆ −
∆2
2
+
∆3
3
−
∆4
4
+ O
(
∆5
))
.
Hence obtain the second order approximation for
∂V
...
Macroeconomics Data Calculations
Here are the slides from the macroeconomics data calculations short videos that we recorded ahead of the June 2018 A Level economics exam.
Running head RISK REDUCTION .docx
Running head: RISK REDUCTION 1
RISK REDUCTION 4
Risk reduction
Paul Grasso
CSU
Unit 6 Project EMS Risk Reduction
Risk reduction
Complete a cost vs. benefit analysis report for your risk reduction program.
Cost-benefit analysis refers to a technique that is used in the comparison of the total costs that are incurred in a certain project or a program with the benefits, and it uses monetary units as the common metric. The costs that would be incurred in the implementation of a risk-reduction program includes the total cost of the activity including both the direct and the indirect costs as well as the costs of the potential risks that are likely to arise (Pearce, Atkinson, & Mourato, 2006). The cost depends on the approach of the program, and it looks into all the activities which are conducted as part of the systematic analysis and in the planning process including research. Additional expenses regarding money, time and other resources are considered to be more reasonable from the perspective of the willingness of the members of the public to incur expenses because these costs to a great extent aids in the reduction of the level or costs associated with the risks
In the implementation of a risk reduction program, benefits refer to the advantages that the organization is likely to accrue as a result of the implementation. The benefits include all the direct as well as the indirect revenues and the intangible benefits such as increased level of productivity due to factors such as the improvement in morale and safety of the employee’s and also an increase in the level of sales as a result of the customer’s goodwill. Lots of benefits are derived from the use of additional resources to inhibit risks from taking place.
Cost-benefit analysis aids in the calculation of the benefit or the net cost that is associated with a certain program. A lot of care should be taken in the process of cost-benefit analysis to ensure that neither cost nor benefits are underestimated or overestimated. Before the implementation of the risk reduction program, one should compare the aggregate cost and benefits to ensure that the benefits of implementation outweigh the cost. A program is said to be rational if the costs are less than the benefits and in case of this, it can thus be easily put forward. In the case that the costs are greater than the benefits, a review of the project should be done to increase the benefits or decrease the cost so that the program can be made viable (Quah, & Toh, 2012).
References
Pearce, D., Atkinson, G. & Mourato, S. (2006). Cost-benefit analysis and the environment : recent developments. Paris: Organisation for Economic Co-operation and Development.
Quah, E. & Toh, R. (2012). Cost-benefit analysis : cases and materials. Milt ...
Similar to Answer 9 (15)
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
1. This question is on the application of the Binomial option
More from LivFernandez
Recently uploaded
how can i use my minded pi coins I need some funds.
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins at high rate quickly.
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What website can I sell pi coins securely.
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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how to swap pi coins to foreign currency withdrawable.
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchanges
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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how can I sell pi coins after successfully completing KYC
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins on Bitmart crypto exchange
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins in all Africa Countries.
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino Caucus
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
一比一原版BCU毕业证伯明翰城市大学毕业证成绩单如何办理
BCU毕业证原版定制【微信：176555708】【伯明翰城市大学毕业证成绩单-学位证】【微信：176555708】（留信学历认证永久存档查询）采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
◆◆◆◆◆ — — — — — — — — 【留学教育】留学归国服务中心 — — — — — -◆◆◆◆◆
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二.真实使馆公证(即留学回国人员证明,不成功不收费)
三.真实教育部学历学位认证（教育部存档！教育部留服网站永久可查）
四.办理各国各大学文凭(一对一专业服务,可全程监控跟踪进度)
如果您处于以下几种情况：
◇在校期间，因各种原因未能顺利毕业……拿不到官方毕业证【微信：176555708】
◇面对父母的压力，希望尽快拿到；
◇不清楚认证流程以及材料该如何准备；
◇回国时间很长，忘记办理；
◇回国马上就要找工作，办给用人单位看；
◇企事业单位必须要求办理的
◇需要报考公务员、购买免税车、落转户口
◇申请留学生创业基金
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
学历顾问：微信：176555708
when will pi network coin be available on crypto exchange.
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
一比一原版Birmingham毕业证伯明翰大学|学院毕业证成绩单如何办理
Birmingham毕业证原版定制【微信：176555708】【伯明翰大学|学院毕业证成绩单-学位证】【微信：176555708】（留信学历认证永久存档查询）采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
◆◆◆◆◆ — — — — — — — — 【留学教育】留学归国服务中心 — — — — — -◆◆◆◆◆
【主营项目】
一.毕业证【微信：176555708】成绩单、使馆认证、教育部认证、雅思托福成绩单、学生卡等！
二.真实使馆公证(即留学回国人员证明,不成功不收费)
三.真实教育部学历学位认证（教育部存档！教育部留服网站永久可查）
四.办理各国各大学文凭(一对一专业服务,可全程监控跟踪进度)
如果您处于以下几种情况：
◇在校期间，因各种原因未能顺利毕业……拿不到官方毕业证【微信：176555708】
◇面对父母的压力，希望尽快拿到；
◇不清楚认证流程以及材料该如何准备；
◇回国时间很长，忘记办理；
◇回国马上就要找工作，办给用人单位看；
◇企事业单位必须要求办理的
◇需要报考公务员、购买免税车、落转户口
◇申请留学生创业基金
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
学历顾问：微信：176555708
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how can i use my minded pi coins I need some funds.
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how to swap pi coins to foreign currency withdrawable.
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when will pi network coin be available on crypto exchange.
when will pi network coin be available on crypto exchange.
Answer 9
- 1. Chapter 2 The Measurement and Structure of the National Economy 17 (c) The GDP deflator is the ratio of nominal GDP to real GDP. In the base year, nominal GDP equals real GDP, so the GDP deflator is 1. In the current year, the GDP deflator is $200,000/$178,000 = 1.124. Thus the GDP deflator changes by [(1.124/1) − 1] × 100% = 12.4% from the base year to the current year. (d) Nominal GDP rose 257%, prices rose 12.4%, and real GDP rose 218%, so most of the increase in nominal GDP is because of the increase in real output, not prices. Notice that the quantity of oranges quadrupled and the quantity of bananas more than doubled. 7. Calculating inflation rates: 1929–30: [(50.0/51.3) − 1] × 100% = −2.5% 1930–31: [(45.6/50.0) − 1] × 100% = −8.8% 1931–32: [(40.9/45.6) − 1] × 100% = −10.3% 1932–33: [(38.8/40.9) − 1] × 100% = −5.1% These all show deflation (prices are declining over time), whereas recently we have had nothing but inflation (prices rising over time). 8. The nominal interest rate is [(545/500) − 1] × 100% = 9%. The inflation rate is [(214/200) − 1] × 100% = 7%. So the real interest rate is 2% (9% nominal rate − 7% inflation rate). Expected inflation was only [(210/200) − 1] × 100% = 5%, so the expected real interest rate was 4% (9% nominal rate − 5% expected inflation rate). 9. (a) The annual rate of inflation from January 1, 2011, to January 1, 2013, is 10%. This can be found by calculating the constant rate of inflation that would raise the deflator from 200 to 242 in two years. This gives the equation (1 + π)(1 + π) = (242/200), which has the solution π = 10%. An easy way to think about this question is this. A constant inflation rate of π raises the deflator from 200 on January 1, 2011, to 200 × (1 + π) on January 1, 2012, and to 200 × (1 + π) × (1 + π) = 242 on January 1, 2013. So we need to solve the expression (1 + π)2 = 242/200. (b) By similar reasoning, the inflation rate over the three-year period is (1 + π)3 = 266.2/200, or π = 10%. (c) We can derive a general expression in the same way: 1 + π = P1/P0 1 + π = P2/P1 ⋅⋅⋅ ⋅⋅⋅ ⋅⋅⋅ 1 + π = Pn/Pn–1 Multiplying all these lines together, we get: (1 + π)n = (P1/P0) × (P2/P1) × ⋅⋅⋅ × (Pn/Pn – 1) = Pn/P0 ©2014 Pearson Education, Inc.