Answer:
An investment firm or fund is a partnership, trust or corporation that “pools” money from shareholders and invests it in the appropriate security instruments and multiply investment money.
An economic cost of instability would be increase in unemployment - a.
Having a very volatile (instable) market can create problems which make it more unsure how people would be able to keep a job for a longer time-frame. When a market is volatile, this essentially means that a lot of changes can happen very fast - making it unstable for people and their jobs.
Answer:
The question is not clear, but it is assumed that the discount is a rate previously established on the coupon. This can be 10%, 15%, 20%, 25%, etc. For this reason no calculations are made to determine the relationship between what is requested in the question and what Ellen could actually receive as a benefit.
Answer:
a. Levered beta = unlevered beta * ( 1 + (1-tax rate)*D/E ) = 1.2 * (1 + ( 1 - 0) * (40/60) ) = 2.0
D. leniency is based on when somebody rates an employee too high. Strictness error is when somebody was rated very very low.
