ly buy stock in companies that are ranked in the 80thpercentile or above in terms of dividends paid in the previous year. You are looking at a company that ranked 5 of 70 companies that paid dividends in 2019.
a. Will this company qualify for your portfolio?
b. If you had the data on the total dividends paid by each of the 70 companies, which measure of average would be the most meaningful –mean, median, midrange, or mode? Explain
ly buy stock in companies that are ranked in the 80th percentile or above in terms of dividends paid in the previous year. You are looking at a company that ranked 7 out of 450 companies that paid dividends in 2019.
et loans (he doesn't "earn" income). With the loans (L) he needs to decide between first period consumption (C1) and investment (I). The amount invested will allow him to get a second period income Y with probability P which is increasing in I (therefore, P(I)), In case of success and the person obtain Y, the individual should use Y to repay the loan (L) that he requested in the first period and consume in the second period (C2). However, with probability 1 - P(I), the person don't get Y and therefore only consume C1. Note that if the individual only invest the loan (L=I) and don't obtain Y, he can't consume anything. That motivates him not to invest the whole loan and keep part of the loan in order to warrant at least first period consumption. Therefore, considering B the parameter for the time preference, the problem would be:
max U=ln(C1) + Bln(C2)
s.t: L = I + C1
Y(I) = L(1+r) + C2
with Probability P(I)
s.t: L = I + C1
with probability 1 - P(I)
My question is, Have you ever seen something like this? If yes, how to proceed? What is more important, I really need a bibliography (a book or article talking about this)