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Need ALT text     Please answer the following question from the data provided in the above graph.   Suppose you drew a line to connect points F and B. Calculate and enter the slope of the line that would connect points F and B. Please enter this answer in the first space provided.   Enter your answer using 1 decimal place, rounding up for 5 or higher at the second decimal place.   Remember to begin the answer with “-” if the answer is negative. Do not enter units or commas.

As presented in the Standards for Educational and Psychological Testing list and briefly describe the 2 major sources of evidence that might be used to evaluate the validity of proposed interpretations of test scores.

List 2 out of the 5 requirements for test equating.

  Need ALT text   Suppose the initial equilibrium corresponded to a quantity equal to 1,000 and a price equal to $100. For the change in supply and no change in demand, the equilibrium quantity is 1,250 and the equilibrium price is $70. For the change in demand and no change in supply, the equilibrium quantity is 750. When both supply and demand change, assume the equilibrium is $40. Using  the diagram to represent changes, determine the price elasticity of demand if the market represents lower production costs but no change in demand. Enter your answer using one decimal place. Do not enter units.

If implemented properly, all forms of the excess earnings valuation model result in the same valuation, and this valuation is equal to the DCF-based valuation.

Need ALT text   Suppose the MSB corresponds to ([a], $[c]) at under allocation, ([b], $[d]) at optimal allocation and the MSB exceeds the MPB by $ [e] for each unit consumed at the under allocation. What is the value of the social welfare loss eliminated at the optional allocation?  

Congratulations on completing this 7-week course in Equity Analysis!  This is a free (and optional) space where you may communicate anything you wish to communicate to me about the course, the exam, your semester experience, etc.  I wish you the best in your future endeavors!  Note: full credit will be given no matter the content of your response and you may apply “NA” if needed.

The risk of an individual security relative to the market is measured by _____________________.

Suppose the graphs below represent Jose’s budget constraints for different goods.  Need ALT text     Suppose the prices of and do not change; the price of    increases; and the price of   decreases.                                                                              Select the best match.

Assume an investment will generate cash flows at the end of Years 1 through 3 equal to $200, $300, and $500, respectively; from that point, the investment begins to generate a series of constant-growth perpetual cash flows. Calculate the present value of these cash flows at the end of Year 0, assuming a discount rate of 7% and a 2% constant growth rate for the perpetuity. Calculate the present value weighted average growth rate for this investment.  [a] [b]