Suppose the Following Version of the APT Is a Good $$\begin{array} { l l l l } & \beta ^ { 1 i } & \beta ^ { 2 i } & \beta ^ { 3 i } \\\text { Microsoft } & 2 & - 1 & 1\end{array}$$

question 33

Essay

Suppose the following version of the APT is a good model of risk in the stock market.There are three factors: (1) the stock market's excess return, in percentage points; (2) the unemployment rate minus its natural rate (the level the unemployment rate would be if the economy were at full employment), in percentage points; and (3) the real federal funds rate minus its long-run equilibrium value.Suppose the natural rate of unemployment is 4.5 percent and the long-run equilibrium value of the real federal funds rate is 3.0 percent.Each of the following stocks has the beta coefficients shown in the table below: $$\begin{array} { l l l l } & \beta ^ { 1 i } & \beta ^ { 2 i } & \beta ^ { 3 i } \\\text { Microsoft } & 2 & - 1 & 1\end{array}$$
$$\begin{array} { l l l l } \text { Goldcrafters } & 3 & 2 & - 1 \\\text { State Farm } & 0 & - 2 & 0\end{array}$$
If your forecast for next year is that the risk-free interest rate next year will be 1.0 percent,
a.the overall stock market will return 10.0 percent, the unemployment rate will be 5.0 percent, and the real federal funds rate will be 2.0 percent, what is the expected return (in percent,
with two decimals) to each of the three stocks? Show your calculations.
If your forecast for next year is that the risk-free interest rate next year will be 2.0 percent,
b.the overall stock market will return 20.0 percent, the unemployment rate will be 4.0 percent, and the real federal funds rate will be 4.0 percent, what is the expected return (in percent,
with two decimals) to each of the three stocks? Show your calculations.

Acknowledge the individual differences in motivation and challenges in motivating employees.

Understand the equation that relates performance with ability and motivation.

Recognize the dynamic nature of needs and their role in motivation.

Identify the application of pressure by managers on underperforming employees based on perceived reasons.

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Definitions:

Psychology Text

A written or digital publication concerning the study of the mind and behavior, often used for educational purposes.

Cognitive Dissonance

A psychological state that describes the uncomfortable feeling when a person holds two or more conflicting cognitions, beliefs, attitudes, or values at the same time.

Operant Conditioning

A type of learning in which the consequences of behavior are manipulated so as to increase or decrease the frequency of an existing response or to shape an entirely new response.

Dishonest Coworker

A colleague who lacks integrity and honesty, possibly engaging in deception or fraud in the workplace.