Consider a game of tennis from deuce onward. Starting at the state of deuce, if the server wins, the score is ad-in. If the server then loses the next point, the game is back to deuce. However, if the server wins two points in a row, he wins the game. Similarly, starting at the state of deuce, if the returner wins, the score is ad-out. If the returner then loses the next point, the game is back to deuce. But if the returner wins two points in a row, he wins the game. Let the probability of winning a point be 0.2. Moreover, the winner gets $10, and the loser pays $10. a. Is this game recursive?
b. Draw and properly label the game tree. If there is a state that recurs, do not go beyond that state.
c. What is the probability of winning the game in the state of deuce?
d. What is the probability of winning the game for the server given that he wins the first point after deuce?
e. What is the value of the game at the state of deuce?

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.

For 2016, gourmet kitchen products reported $22 million of sales and $19 million of operating costs (including depreciation). the company has $15 million of total invested capital. its after-tax cost of capital is 10%, and its federal-plus-state income tax rate was 36%. what was the firm’s economic value added (eva), that is, how much value did management add to stockholders’ wealth during 2016?