Should Companies Refuse Smokers Hire - 871 Words

Should companies refuse smokers hire? The argumentative essay topic is â€Å"Should companies have the right to refuse to hire smokers† which is about social argumentative essay topics. There were smoking bans in bars and restaurants to create some backlash in the last decade, while now the policies about some hospitals and businesses refuse smokers hire that appeal to a new ethical issue. Therefore, people are arguing it—should companies refuse smokers hire? Additionally, the author of the argumentative essay disagrees the policies what are unethical he thinks, though there are a bit of person argument that it’s for their own good. This argument is significant because it refers to relationship between companies and workers. No smoking is not realistic, but I still argue that the policies against hiring smokers will save lives over the long term. Besides that, I hate cigarettes and cigarette breath as my parents don’t smoke. One of the reasons is that peop le who are agree with author think that it’s paradoxical to create polices against employee who smoke. They believe the hospitals are callous and contradictory for health care institutions due to refuse to employ smokers, which imply discriminate for those people. However, I am really not agree them whose thoughts and I insist that hospitals refuse to hire smokers is responsible for patients, since smoking can case cancers seriously especially â€Å"compel† patients to second-hand smoke would be worse. For example, even thoughShow MoreRelatedWhat Would You Do ? Essay820 Words   |  4 Pagesyour Board of Directors mentioned that some companies are now refusing to hire smokers and that the board should discuss this option at the next month’s meeting. Nationwide, about 6,000 companies refuse to hire smokers. Weyco, an employee benefits company in Okemos, Michigan, requires all applicants to take a nicotine test. Weyco’s CFO says, â€Å"We’re not sa ying people can’t smoke. We’re just saying they can’t smoke and work here. As an employee-benefits company, we need to take a leadership role in helpingRead MoreShould Companies Want Smokers Hire Smokers?931 Words   |  4 PagesThe argumentative essay topic is â€Å"Should companies have the right to refuse to hire smokers† which is about social argumentative essay topics. There were smoking bans in bars and restaurants to create some backlash in the last decade, while now the policies about some hospitals and businesses refuse smokers hire that appeal to a new ethical issue. Therefore, people are arguing it—should companies refuse smokers hire? Additionally, the author of the argumentative essay disagrees the policies whatRead MoreOff Duty Smoking Essay762 Words   |  4 PagesOff-Duty Smoking 1. Was Rob’s choice justified? Why or why not? No, I don’t think Rob’s choice was justified. Rob did not hire this person because she was a smoker nor because she was less qualified. His reason for hiring her was, â€Å"Rob had to go with soft reasons. Cathy was a smoker. Rob didn’t like smoking – he considered it disgusting and a sign of weakness of character.† I feel as though Rob was being discriminative towards her. If Rob would have not hired Cathy because of something that sheRead MoreEssay on Employee Privacy In the Workplace461 Words   |  2 Pagescomputer and email monitoring. Many employees don’t seen to understand exactly employers do this. Employers monitor email accounts and company computers mainly for two reasons. Reason one is that they don’t want their employees wasting company time for personal use. In most places, that is considered a very good reason, because if an employee is using company time for personal things, then work isn’t being done. Then it causes problems for everyone. Reason two is that employers want to make sureRead MoreEthics in the Workplace Essay2063 Words   |  9 PagesDecember 11, 2005 Ethics in the Workplace Case Study Action Plan Introduction In 2003, Weyco Inc., a licensed third party medical benefits administrator based in Okemos, Michigan, announced that effective January 1, 2005, they would no longer hire smokers (http://www.weyco.com/web/). They were changing their policy to a Tobacco-Free Policy, which would not only prohibit employees from smoking in or around the workplace, but outside the workplace, including in the privacy of their own homes. EmployeesRead MoreAdvantages and Disadvantages of No Smoking in Working Places2325 Words   |  10 Pagesand by reducing excess smoking-related absenteeism among smokers who are motivated to quit as a result of the tobacco-free policy. Especially for small businesses that have employees who handle a variety of tasks, productivity can be greatly increased by reduced absenteeism. Workplace smoking cessation programs can increase smoking cessation rates, improve employee health, reduce exposure to second-hand smoke, and decrease costs. A smoker who quits could save employers an estimated $960 in excessRead MoreThe Epidemic Of Cigarette Smoking2740 Words   |  11 Pagesincluding such common diseases as rheumatoid arthritis, colorectal cancer, and diabetes mellitus. There is sufficient evidence to suggest that there is a contributing relationship between smoking and diminished health status. Self-reported data among smokers included poor overall health, missing work, and increased health care use and cost due to tobacco use. Cigarette smoking increases risk for all-cause mortality in men and women, with more than 20 million premature deaths that can be attributed toRead MoreHrci Exam Guide9197 Words   |  37 PagesStrategic organizational issues related to employee compensation include all of the following EXCEPT: a. whether to emphasize seniority or performance. b. how to handle salary compression. c. whether employees should be paid weekly, biweekly, or monthly. d. who should distribute pay checks to employees. 5. A specialized approach to organizational change in which the employees themselves formulate the change that is required and implement it, often with the assistance of a trainedRead MoreChap8440 Words   |  34 Pagesmarketing information, and help managers use it in their decision making. a. distribute b. collect c. retrieve d. store e. validate (Answer: a; p. 97; Challenging) 4. The marketing information system is not limited to use by the company it serves. It may also provide information to _____. a. the government b. external partners c. various publics d. competitors e. none of the above (Answer: b; p. 97; Moderate) 5. Marketers must weigh carefully the costsRead MoreCorporate Social Response6999 Words   |  28 PagesCorporate Social Responsibility - What does it mean? CSR is about how companies manage the business processes to produce an overall positive impact on society. The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of

Were Women a Help or Bother During the Vietnam War

Are women capable of handling battles and all its components? Of course because all throughout history women have made significant contributions to America, especially the Vietnam War. The United States has been slower to include women in its military planning and actions. Men believed in saving the United States from communism, and many women believed they could make a difference in the battle. Women, military as well as civilian, volunteered to go to Vietnam for a variety of reasons, as they wanted to show love and companion to men, they wanted to show their independency as feminists disputing the fact that many Americans believed women were not capable of handling such a traumatic war. To begin with, women were able to show men love†¦show more content†¦There was also opposing viewpoints that women were at high risk of sexual harassment (Carlson 4). Although that should not get in the way when women can report the individual who did her wrong and also there was a risks of violations back at home. While their daily experiences were different, all women who served were met with the clear realities of danger and death on a daily basis (Women in Vietnam). Once the initial experience of arrival was over, women began to camouflage to their situations and to settle their job that the war offered (â€Å"Iris†). They, like the men in uniform who were doing the fighting, came under much of the same enemy fire and risked their lives. They were a rare breed of women who were knew what not so much was coming to them but was able to handle such a traumatic devastation. But along with men, they were able to handle seeing such horrible situations, opposing that wom en and men should have been allowed to fight the battles regardless of the sex. At the end, women would return home individually, with no grand welcome awaiting them. Many of these women had experienced the terrors and trauma of the war, and had to find a way to adjust with these awful horrible memories while finding their place back in a normal life. Many felt the best way to deal with this was to fade away into isolation, found it difficult to speak to family and friends, felt anger and hadShow MoreRelatedEssay on We Were Soldiers1091 Words   |  5 PagesWe Were Soldiers   Ã‚  Ã‚  Ã‚  Ã‚  The Vietnam War was a nightmare for many soldiers. It re-defined the meaning of war to an entire generation. As the conflict grew it became known around the world that this was a war that could not be won. After this was realized by America the main focus became to get out instead of getting a victory. In the 2002 film We Were Soldiers, directed by Randall Wallace, a true account of the first major battle in Vietnam is given. At the beginning of the film he introducesRead MoreEssay about Report on We Were Soldiers1124 Words   |  5 PagesBehind Extended Essay of We Were Soldiers The Vietnam War was a nightmare for many soldiers. It re-defined the meaning of war to an entire generation. As the conflict grew it became known around the world that this was a war that could not be won. After this was realized by America the main focus became to get out instead of getting a victory. In the 2002 film We Were Soldiers, directed by Randall Wallace, a true account of the first major battle in Vietnam is given. At the beginningRead MoreAll Quiet on the Western Front by Erich Maria Remarque Essay668 Words   |  3 PagesIf one looks at propaganda posters from World War I and II, one often sees an ugly portrayal of the enemy leader, stereotypical portrayals of enemy citizens, or heroic depictions of men from one’s home country followed by motivational text. Despite the obvious fallacies that are being used, scare tactics are great methods of promoting nationalism within a country. Propaganda posters and media were widespread during both World Wars, within bot h opposing powers. To unite the people of a country, itRead MoreHippies : Who Are They?888 Words   |  4 Pagesbefore, then let me be the first to bring it to help create a visual mindset of how they look and dress. Most of us have seen the basic â€Å"hippy image†. Bell bottom blue jeans, tie-dyed shirts, bandanas, circle sunglasses, both men and women had long hair and of course we cannot forget, bare feet. Why bother buying shoes when they had their feet for free? The way that hippies dressed was a visual set for their beliefs, values, customs and so forth. Hippies were also vegetarians and believed that The wordRead MoreEssay on General Education1017 Words   |  5 Pagesquarter hold a postsecondary degree.(In the United Kingdom, by contrast, less than 15 percent of the population goes to university.) There are 14.5 million students in American colleges and universities today. In 1975 there were a little over 11 million; in 1965 there were fewer than 6 million. And yet when a person in higher education talk about its conditions and its prospects, doom is often in their voices. There are three matters these people tend to worry about: the future of liberal artsRead MoreThe Major Economic Problems That Have Plagued Latin America1497 Words   |  6 Pages1. What are the major economic problems that have plagued Latin America in the 20th century? During the 20th century Latin America went through a change after the U.S made the clam to directly defend Latin America. This caused a sudden trade switch from the Europe nation to the U.S. With this trade switch we start to see a big gap between the lower and upper class. With this gap the poor gets poorer and the rich become Carlos Slim. Carlos Slim was the world’s richest person form 2010-2013 and isRead MoreNgo Dinh Diem Essay example3600 Words   |  15 PagesNgo Dinh Diem As the Cold War escalated in the United States, Eisenhower and Washington would make their anti-communist policies felt by stopping Ho Chi Minh from realizing his goal of reunification of Vietnam. The Americans would erect a new non-communist government in Nam, or south, and put at its helm, Ngo Dinh Diem. From 1954-1963, Diem presided over an increasingly corrupt, devious, and repressive regime. Communist guerrillas backed by North Vietnam launched a new rebellion, but a civilRead MoreBenefits And Negative Outcomes Of Sex Tourism2277 Words   |  10 Pages(dictionary.cambridge.org). The main purpose is to have sex with foreign women and or men. In Brennan s article on Sex Tourism, we learn that like any other tourism, the only people that really benefit from it are the tourists, not even the locals or the women. The women get better financial pay in Bangkok than at other Sex Tourism destinations, but most of the money that they earn goes straight to their husbands. The women there offer themselves in hopes that they will be swept off their feet byRead MoreSex Tourism Is A Large Part Of Income1875 Words   |  8 Pageschildren(dictionary.cambridge.org). The main purpose is to have sex with foreign women. In Brennan s article on Sex Tourism, we learn that like any other tourism, the o nly people that really benefit from it are the tourists, not even the locals or the women. The women get better financial pay in Bangkok than at other Sex Tourism destinations, but most of the money that they earn goes straight to their husbands. The women there offer themselves in hopes that they will be swept off their feet by theRead MoreThe Ride Along Experience Essay1553 Words   |  7 PagesHeth Michelle Emerson-Lewis CRJ 110 – 102 During my ride along with Officer McNairy of the Castle Rock Police department we had two cases of harassment, one welfare case, and one traffic violation that we worked on. Both harassment cases were easy enough, as was the traffic violation which we let go with just a warning. Welfare cases don’t normally go to police officers to manage, but on the day of my ride along one was. I had a very good time during my ride along and will probably do more in the

Desiree’s Baby Free Essays

Desiree’s baby Kate Chopin wrote the short story â€Å"Desiree’s baby† in 1892, when black people where considered second-class citizens. Even though the slaves were freed in 1865 as a directly consequence of the north states victory at the civil war, racial segregation were at it highest, particular because of the â€Å"Jim Crow† laws. Black people were free – but their opportunities were not good. We will write a custom essay sample on Desiree’s Baby or any similar topic only for you Order Now Even tough many new schools and churches were built for the black people, racism were a big sinner and black people were treated very bad – especially in the south states. Miscegenation was a cursed word, as the communities saw it as a crime and both the family and the baby were suppressed. Desiree felt that on her own body. â€Å"Desiree’s baby† contains a lot of typical short story characteristics, e. g. â€Å"in media res† and an ambiguous ending – yet it differs on places, such as the length of the act and the number of characters – but Kate Chopin wrote both short stories and novels, so it’s not unthinkable that she mixed the two genres here. The short story is told by an omniscient third-person narrator. It’s not a limited narrator, as we hear more than one character’s thoughts. E. g. in this sentence â€Å"it made her laugh to think of Desiree with a baby† one of the characters, Madame Valmonde’s, inner thoughts are shared with us, while Armand bares his soul places like this â€Å"he thought Almighty God had dealt cruelly and unjustly with him; †¦ †. The main character is Desiree. She’s â€Å"beautiful and gentle, affectionate and sincere – the idol of Valmonde† and an orphan, found in â€Å"the shadow of the big stone pillar† just outside Valmonde. She’s adopted by the religious and kindly madame Valmonde, who believes that â€Å"Desiree had been sent to her by a beneficent Providence to be the child of her affection, seeing that she was without child of the flesh†. Desiree’s also described very gentle in her actions, e. g. with the slaves and she’s madly in love with Armand, which sentences such as â€Å"when he smiled, she asked no greater blessing of God† intensely indicates – and it is, at least in the start, reciprocated. Armand is described as a very â€Å"hard† and strict person, but his love for Desiree makes him soft as butter. Their love is almost described as in a fairytale, as he fell in love with her â€Å"as if struck by a pistol shot†. He’s blinded by love and even looks beyond her â€Å"obscure origin†, even though he’s warned. Later, he grew even softer, as â€Å"â€Å"marriage, and later the birth of his son had softened Armand Aubigny’s imperious and exacting nature greatly† – but all that changed, when it occurred to him that the baby was not white. He’s a product of his time and surroundings – a â€Å"typical† south state man, who leads a cotton farm and perceives black people as second-class people. However, Madame Valmonde, is at some points ahead of her time. When Desiree wrote to her that the people were telling her that she was not white, she answered â€Å"My own Desiree: Come home to Valmonde; back to your mother who loves you. Come with your child. â€Å". Even though she gave birth to a â€Å"colored† baby, she still wishes to see and be in touch with Desiree AND the baby. That may be considered normal today, but at that time it was an enormous privilege. The setting of the story is the southern state, Louisiana, on the two plantations Valmonde and L’abri. Valmonde is the name of the family who owns the plantation, while L’abri is the French word for shelter. The reason that many French words and French sounding names appear in this story, is that Louisiana once was a French colony. The story takes place before slavery was abolished, so it’s going on around the mid-nineteenth century. The community surrounding the characters of the story are very wealthy, as many slaves harvest the cotton at L’abri. Besides that, it is also a sign of status and money that Armand orders a â€Å"corbeille from Paris† to his wedding with Desiree, as the journey from Louisiana to Paris was incredibly long and difficult at that time. The story unfolds in the period July to August, as we hear that three months are going from the day Miss Valmonde visit Desiree to the â€Å"break up† of Desiree and Armand – and Desiree leaves Armand â€Å"an October afternoon†. One of the themes of the story is miscegenation. Kate Chopin wishes to bring the subject to the knowledge of people – to bring the topic to debate. Kate Chopin is famous for using naturalism in her work, which is a literate movement, with realistic writing, who brings social issues to debate. It’s used her, as the story narrates about a white girl, giving birth to a colored child, taking the â€Å"easy† way out – disappearing, which is possible the death for her and her child. The hertz against â€Å"mixed†, and of course black, people, were something Kate Chopin wished to change and that’s the issue she tried to put focus on with this short story. The story also deals with ethical and morale themes, such as the fact that it’s not right to accuse people for something you’re not sure about. Armand learns this the hard way, as he receives â€Å"nemesis† for his evil deed, when he discovers that it’s him who’s carrying the black genes. How to cite Desiree’s Baby, Papers Desiree’s Baby Free Essays Final draft DESIREE’S BABY, by Kate Chopin Desiree’s Baby, by Kate Chopin, describes a girl who was adopted by Monsieur and Madame Valmonde. Madame Valmonde loved Desiree very much because she was beautiful and gentle, affectionate and sincere. Desiree was married to Armand Aubigny. We will write a custom essay sample on Desiree’s Baby or any similar topic only for you Order Now When she had a baby, Armand was pleased. However, he had changed since he realized that the baby was not white and he assumed that Desiree was not white. One day, Armand and his wife had an argument with each other, after that Desiree left L’Abri. Finally, she walked off into a deserted field and never be seen again although Madame Valmonde asked Desiree and the baby to return to Valmonde estate. At the end of the story, Armand knew that his mother belonged to the race that was cursed with the branch of slavery on account of her letter. Among all characters portrayed in this story, I am interested in Madame Valmonde the most for some reasons. First, she loved Desiree as an apple of her eyes although the girl was not her own child. Second, Madame told her adopted child to come back home when Armand stopped loving her daughter and the baby. Last, this character has given me an image that mother is always a warm, lovely person. Moreover, she would accept whatever her children have done. What I have significantly learnt from the story is that racism is unacceptable and it may affect your life too. I can see that Armand changed when he had became a racist. He was not pleased with his family on the ground that the baby was not white. As a result, his family was broken. One more important thing that I have learnt is careless in making decision. Being too rash to judge someone or something gives many bad feedbacks. As an example in the story, Armand thought that his son was not white on account of Desiree, but actually it was not. Besides this, Armand found out his mom was a branch of slavery which led his son to be black because of his ancestors. Eventually, he might have suffered from what he had done to his wife and son. After I read the story, I like it very much. I would recommend this story to my friends, so they can learn more for their own and get more experiences from Armand’s mistakes. How to cite Desiree’s Baby, Essay examples

Assigment 2 free essay sample

1. Suppose that you can trade a riskless asset that yields 5% and two risky assets A and B. The expected return of asset A is 8% and that of asset B is 11%, while the standard deviation of asset A is 14% and that of asset B is 23%. The covariance between assets A and B is 0:0322. Solution . rA,B= CovAR(A,B) / [(? A)(? B)] = -0. 0322 / (14%)(23%) rA,B = -1 But when rA,B = -1, (? p)^2 = [wA(? A) – wB(? B)]^2, ? p = wA(? A) – wB(? B) Is there is no risk fo the portafolio, then ? p = 0 So this means that: 0 = 14%(wA) – 23%(1 – wA), solve this for wA, wA = 0. 6216 wB = 1 – wA, wB = 0. 3784 E(Rp) = 0. 6216(8%) + 0. 3784(11%) = 9. 1352% Suppose that each one of the securities has a value of $100, Cash Flow Today Cash Flow 1 year from today Buy 0. 6216 units of A -$62. 16 $62. 16(1. 08) = +$67. 13 Buy 0. 3784 units of B -$37. 84 $37. 84(1. 11) = +$42. 00 Short 1 unit of risk-free +$100 -$100(1. 05) = -$105 Net Cash Flow 0 +$4. 13 What today will be $4. 13/(1. 05) = $3. 93 2. You are the risk manager in a major investment bank. We will write a custom essay sample on Assigment 2 or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The banks current portfolio consists of U. S. stocks (50%), bonds (20%), and derivatives (30%). The expected returns and standard deviations of these investments are Expected Return 13% 7% 25% Standard Deviation 25% 9% 50% A trader comes with a idea about investing in some new emerging markets: the markets of Polynesia, Micronesia, and New Caledonia. These markets have the following characteristics: Polynesia Micronesia New Caledonia Expected Return 18% 20% 22% Standard Deviation 30% 35% 28% Correlation with Stocks 0. 4 0. 2 0. 6 Correlation with Bonds 0. 3 0. 1 0. 2 Correlation with Derivatives 0. 2 0. 3 0. 4 Your job as risk manager is to determine how this investment would project the overall risk of the banks portfolio. Based on risk considerations alone, which of the three emerging markets is the best investment? Assume that the investment in the new market is based by borrowing on the riskless asset, and that it is a very small part of the banks overall investment. The market with the smallest risk contribution can be figured by determining the CovAR of each market to the portfolio. CovAR(RA, RM) = (? A)var(RM) Thus, it eliminates the need to determine Var(RM). If the CovAR of Polynesia to the bank’s portfolio can be measured by first determining the covariance between stocks, bonds, and derivatives. Then, these values can be summed to compute the CovAR of Polynesia to the bank’s portfolio. CovAR(Polynesia, Stocks) = xstocks(? Polynesia)(? stocks)(weight of stocks) = 0. 4 * 0. 3 * 0. 25 * 0. 5 = 0. 015 With similar calculations, CovAR(Polynesia, Bonds) = 0. 00162 and CovAR(Polynesia, Derivatives) = 0. 009 CovAR(Polynesia, portfolio) can be computed by summing CovAR(Polynesia, Stocks), CovAR(Polynesia, Bonds), and CovAR(Polynesia, Derivatives) CovAR(Polynesia, portfolio) = 0. 015 + 0. 00162 + 0. 009 = 0. 2562 With similar calculations, CovAR(Micronesia, portfolio) = 0. 02513, CovAR(NewCaledonia, portfolio) = 0. 038808 The best option of investment is the bank is Micronesia. 3. Stocks X, Y, and Z have the same expected return 8% and the same standard deviation 19% (a)Compute the standard deviation of the equally weighted portfolio if the correlation between all pairs of stocks is 1:0. Explain the intuition behind this result. r = 1, ? p = 19% With a perfect positive correlation, there is no idiosyncratic risk, thus there are no benefits of diversification. (b) Compute the standard deviation of the equally weighted portfolio if the correlation between all pairs of stocks is 0:5. Using excel, when r = 0. 5, ? p = 15. 51% (c) Compute the standard deviation of the equally weighted portfolio if the correlation between all pairs of stocks is 0:0. Using excel, when r = 0, ? p = 10. 97% (d) Compute the standard deviation of the equally weighted portfolio if the correlation between all pairs of stocks is 0:5. Using excel, when r = -0. 5, ? p = 0% (e) Explain intuitively in which case above (a) to (d) (if any) is the equally weighted portfolio the minimum variance portfolio? (No computation is needed. ) The minimum variance portfolio is seen when r = -0. 5. Here, ? p = 0% (f) How does your answer to part (e) change if stocks X, Y, and Z have the same expected return 11% instead of 8% and nothing else is changed? No change (g) How does your answer to part (e) change if stocks X, Y, and Z have the same standard deviation 15% instead of 19% and nothing else is changed? No change 4. Your rich uncle asks you financial advice. He is currently holding a portfolio of 30% T-bills and 70% Microsoft stock. The beta of Microsoft is 1. 2 and the standard deviation is 37. 95%. You decide to base your advice on the CAPM. The T-bill rate is 5%. The market portfolio has expected return 15% and standard deviation 20%. (a)What is the expected return of your uncles portfolio? E(RM) = 5% + 1. 2(15% 5%) = 17% E(Rp) = (3/10)5% + (7/10)17% = 13. 4% (b) What is the standard deviation of your uncles portfolio? (? p)^2 = (7/10)^2(0. 3795)^2 + (3/10)^2(0)^2 + 0 = 0. 0705699 ? p = 0. 0705699^0. 5 = 0. 26565 = 26. 565% (c) You decide to recommend to your uncle a portfolio that has the same expected return as his portfolio but the lowest possible standard deviation. Which is this portfolio, and what is its standard deviation? 13. 4% = wTP(15%) + (1 – wTP)(5%) solving for wTP, wTP = 0. 84 wT = 1 – wTP, wT = 0. 16 (? p)^2 = 0. 84^2(0. 2)^2 = 0. 028224 ?p = 0. 168 = 16. 8% 5. Consider market portfolio and three risky assets: A, B, and C. Over the next year, only three scenarios of how the economy will develop can happen with equal probability. The table below describes, in each scenario, returns predicted by analysts for the market portfolio and for the three risky assets. Economy Market A B C Boom 17% 11% 3% 2% Mediocre 6% 11% 3% 2% Recession -2% 2% 7% 4% (a) What are the expected returns and the standard deviations of returns from in- vesting into the market portfolio and into each of the three risky assets? E(RM) = (1/3)17% + (1/3)6% + (1/3)-2% = 7%E(RM) = 7% With similar calculations, E(RA) = 8%, E(RB) = 4. 33%, E(RC) =2. 67% (? M)^2 = (1/3)(17% 7%)^2 + (1/3)(6% 7%)^2 + (1/3)(-2% 7%)^2 = 0. 0061 ? M = 0. 0061^0. 5 = 0. 0779 = 7. 79% With similar calculations, ? A = 4. 24%, ? B = 1. 89%, ? C = 0. 94% (b) Covariance of returns of the market portfolio with asset A is where pBoom, pMediocre, and pRecession are the probabilities of the three scenarios to occur. The correlation of returns of the market portfolio with the returns of asset A is _(RM;RA) = Cov(RM;RA) _ (RM) _ (RA) Use the formulas above tend the covariance’s and correlations of returns of assets A, B, and C with the returns of the market portfolio. Using formula, Cov(RM,RA) = 0. 0027, Cov(RM,RB) = -0. 0012, Cov(RM,RC) = -0. 0006 Using formula, ? (RM,RA) = 0. 8171, ? (RM,RB) = -0. 8171, ? (RM,RC) = -0. 8171 (c)What are the betas of assets A, B, and C? ?A = CovAR(RM,RA) / Var(RM) = 0. 0027 / 0. 0061 = 0. 4451? A = 0. 4451 With similar calculations, ? B = -0. 1978, ? C = -0. 0989 (d)If the riskless rate is 3. 5%, what are the expected returns of A, B, and C as predicted by the CAPM? CAPM, E(Ri) = rf + ? i [ E(RM) – rf ] E(RA) = 3. 5% + 0. 4451( 7% 3. 5% ) = 5. 06%E(RA) = 5. 06% With similar calculations, E(RB) = 2. 81%, E(RC) = 3. 15% (e) Draw a graph that contains the riskless asset, the market portfolio, and the three risky assets A, B, and C. Draw the SML in this graph. (f) Find alphas of risky assets A, B, and C. Indicate alphas of each risky asset in the alpha(A) = 8% 5. 06% = 2. 94%, alpha(B) = 4. 33% 2. 81% = 1. 52%, alpha(C) = 2. 67% 3. 15% = -0. 48%