Solutions Manual to accompany Essentials of Investments 9th Edition

Chapter 01 - Investments: Background and Issues CHAPTER ONE INVESTMENTS: BACKGROUND AND ISSUES INTRODUCTION TO THE INSTRUCTORS MANUAL Welcome to the Instructors Manual (IM) for the ninth edition of the Essentials of Investments text by Bodie, Kane, and Marcus. This market-leading text provides comprehensive information on investments. Designed to prepare students for a career

Chapter 01 - Investments: Background and Issues CHAPTER 01 INVESTMENTS: BACKGROUND AND ISSUES 1. Equity is a lower-priority claim and represents an ownership share in a corporation, whereas fixed-income (debt) security is a higher-priority claim but does not have an ownership interest. Fixed-income (debt) security pays a specified cash flow at pre-contracted

Chapter 10 - Bond Prices and Yields CHAPTER TEN BOND PRICES AND YIELDS CHAPTER OVERVIEW This chapter presents various types of bonds, bond characteristics, bond safety and bond ratings, andpricing and yield calculations. This edition also covers credit default swaps.LEARNING OBJECTIVESAfter studying this chapter, the student should be able to calculate bond prices including

Chapter 10 - Bond Prices and Yields CHAPTER 10BOND PRICES AND YIELDS CHAPTER 10BOND PRICES AND YIELDS CHAPTER 10 BOND PRICES AND YIELDS 1. a. Catastrophe bond: Typically issued by an insurance company. They are similar to an insurance policy in that the investor receives coupons and par value, but takes a loss in part or all

Chapter 10 - Bond Prices and Yields 1. The price schedule is as follows: 2. The bond is issued at a price of $800. Therefore, its yield to maturity is 6.8245%. [n = 10; PV = 800; FV = 1,000; PMT = 40] Using the constant yield method, we can compute that

Chapter 11 Excel Application: Convexity 1. Calculate the convexity of a bullet fixed income portfolio, that is, a portfolio with a single cash "ow. Suppose a single $1,000 cash "ow is paid in year 5. [Change cells : 6 0; 8 5; 10 100; 15 0]B B D D= = = = This adjusts

Chapter 11 Excel Application: Immunization 1. When rates increase by 100 bp, what is the change in the future sales price of the bond? !"##$%#&!'The value of reinvested coupons?((! ((!)#&$&$%#*' !"##$%#&!'The value of reinvested coupons?((! ((!)#&$&$%#*' !"##$%#&!' The value of reinvested coupons? ((! ((!)# &$&$%#*' 2. What if rates increase by 200 bp? What is

Chapter 11 - Managing Bond Portfolios CHAPTER 11MANAGING BOND PORTFOLIOS CHAPTER 11MANAGING BOND PORTFOLIOS CHAPTER 11 MANAGING BOND PORTFOLIOS 1. Duration can be thought of as a weighted average of the maturities of the cash flows paid to holders of the perpetuity, where the weight for each cash flow is equal to the present value

Chapter 11 - Managing Bond Portfolios 1. The maturity of the 30-year bond will fall to 25 years, and the yield is forecast to be 8%. Therefore, the price forecast for the bond is: $893.25 [n = 25; i = 8; FV = 1,000; PMT = 70] At a 6% interest rate, the

Chapter 12 - Macroeconomic and Industry Analysis CHAPTER TWELVE MACROECONOMIC AND INDUSTRY ANALYSIS CHAPTER OVERVIEW This is the first of three chapters that cover fundamental security valuation. This chapterintroduces a top-down approach to fundamental security analysis. It covers the first twocomponents: macroeconomic and industry analysis. The text begins with a global analysis,particularly with respect

Chapter 13 - Equity Valuation CHAPTER THIRTEEN EQUITY VALUATION CHAPTER OVERVIEW This chapter discusses models to calculate the intrinsic value of common stock. Balance sheet models, dividend discount models (DDMs), Price/Earnings ratios and free cash flow models are presented. These are models used in fundamental analysis rather than technical analysis. The strengths and weaknesses of these techniques

Chapter 13 - Equity Valuation CHAPTER 13 EQUITY VALUATION 1. Theoretically, dividend discount models can be used to value the stock of rapidly growing companies that do not currently pay dividends; in this scenario, we would be valuing expected dividends in the relatively more distant future. However, as a practicalmatter, such estimates of

Chapter 13 - Equity Valuation CFA 5 Answer: a. The value of a share of Rio National equity using the Gordon growth model and the capital asset pricing model is $22.40, as shown below.Calculate the required rate of return using the capital asset pricing model:k = rf + [E(rM) rf ] = 0.04

Chapter 14 - Financial Statement Analysis CHAPTER 14FINANCIAL STATEMENT ANALYSIS CHAPTER 14FINANCIAL STATEMENT ANALYSIS CHAPTER 14 FINANCIAL STATEMENT ANALYSIS 1. a. Inventory turnover ratio in 2012 = = = 5.876 = = = 5.876 = = = 5.876 Cost of Goods Sold Average Inventor ies $ 2,850 ($ 490 + $ 480)/2 b. Debt to equity ratio in 2012 = = = 3.479 =

Chapter 15 - Options Markets CHAPTER FIFTEEN OPTIONS MARKETS CHAPTER OVERVIEW This chapter describes characteristics of options, terminology used in the options markets, option payoffs and profits to both option owners and sellers (called writers), and positions that are comprised of combinations of options and stock or multiple option contracts. Option-like assets, such as callable

Chapter 15 Excel Application: Options, Stock, and Lending 1. Plot the rate of return to the call-plus-bills strategy (using a diagram like that in Figure 15.5), but now assuming the investor uses an in-the-money call option with a strike price of $80. Assume the calls sell for $15. The higher cost

Chapter 15 - Options Markets 1. a. Strategy one: Protective put Protective Put ST < 1,040 ST > 1,040Stock STSTPut 1,040 ST0Total 1,040 STStrategy two: Bills plus callsBills and Call ST < 1,120 ST > 1,120Bills 1,120 1,120Call 0 ST 1,120Total 1,120 ST Protective Put ST < 1,040 ST > 1,040Stock STSTPut 1,040 ST0Total

Chapter 16 - Option Valuation CHAPTER SIXTEEN OPTION VALUATION CHAPTER OVERVIEW This chapter discusses factors affecting the value of an option and presents analytical and spreadsheet models of option pricing. Put call parity is introduced, manipulating hedge ratios and portfolio insurance techniques are also presented. LEARNING OBJECTIVES After studying this chapter, the student should be able to identify

Chapter 16 - Option Valuation 1. We start by finding the value of Pu . From this point, the put can fall to an expiration-date value of Puu = $0 (since at this point the stock price is uuS0 = $121) or rise to a final value of Pud = $5.50

Chapter 17 - Futures Markets and Risk Management CHAPTER SEVENTEEN FUTURES MARKETS AND RISK MANAGEMENT CHAPTER OVERVIEW This chapter describes the futures markets, trading mechanics involved with futures trading, strategies and risks associated with futures trading and pricing of futures contracts. The material covers background material on stock index contracts, describes how such contracts can be

Chapter 17 Excel Application: Parity and Spreads 1. Experiment with different values for both income yield and interest rate. What happens to the size of the time spread (the difference in futures prices for the long versus short maturity contracts) if the interest rate increases by 2%? First note the difference in the

Chapter 17 - Futures Markets and Risk Management CHAPTER 17 FUTURES MARKETS AND RISK MANAGEMENT 1. Selling a contract is a short position. If the price rises, you lose money. Loss = (1,250 1,200) $250 = $12,500 1. Selling a contract is a short position. If the price rises, you lose money. Loss =

Chapter 18 - Portfolio Performance Evaluation CHAPTER EIGHTEEN PORTFOLIO PERFORMANCE EVALUATION CHAPTER OVERVIEW This chapter presents various performance measures that are used for evaluation of portfolios. The process of decomposing portfolio returns into the various components of the portfolio- building process is presented. Performance measures of market timing, security selection and adding securities to a diversified portfolio

Chapter 18 Excel Application: Performance Attribution 1. What would happen to the contribution of asset allocation to overall performance if the actual weights had been 70/17/13 in the three markets rather than 75/12/13? [Change cells : 15 .7; 16 .17; 17 .13]B B B= = = The contribution from asset allocation decreases from

! Using the Excel sort function:i. [Sort by Column F] Sharpe Ratio: Millennium, Omega, Momentum Watcher, S&P Index Return, Big Potential, Alpha, Omicron, Big Valueii. [Sort by Column G] Treynor Measure: Omicron, Momentum Watcher, Big Potential, Omega, S&P Index Return, Millennium, Alpha, Big Valueiii. [Sort by Column H] Jensen

1. Find three points on the efficient frontier corresponding to three different expected returns. First select the correct tab, and scroll down to the Portfolio Efficient Frontier [Select Tab "International Port"] In the chart Porfolio Efficient Frontier, search for the blue linethe efficient frontier. [Select Chart "Portfolio Efficient Frontier; Move Pointer over three points

Chapter 19 - Globalization and International Investing CHAPTER NINETEEN GLOBALIZATION AND INTERNATIONAL INVESTING CHAPTER OVERVIEW This chapter notes that the United States offers a relatively small portion of the entire assets available for investment purposes. In addition, the benefits of increased diversification as a result of international investing are presented. International indexes are available for passive

Chapter 02 - Asset Classes and Financial Instruments CHAPTER TWO ASSET CLASSES AND FINANCIAL INSTRUMENTS CHAPTER OVERVIEW One of the early investment decisions that must be made in building a portfolio is asset allocation. This chapter introduces some of the major features of different asset classes and some of theinstruments within each asset class. The

Chapter 20 - Hedge Funds CHAPTER TWENTY HEDGE FUNDS CHAPTER OVERVIEW While mutual funds are still the dominant type of investment fund, hedge funds enjoyed much faster growth until the financial crisis of 2008. In 1997 assets under management were about $200 billion; this number peaked at about $2 trillion before the downturn in 2008 reduced

Chapter 20 - Hedge Funds CHAPTER 20 HEDGE FUNDS 1. No, a market-neutral hedge fund would not be a good candidate for an investors entire retirement portfolio because such a fund is not a diversified portfolio. The term market-neutral refers to a portfolio position with respect to a specified market inefficiency. However, there

Chapter 21 - Taxes, Inflation, and Investment Strategy CHAPTER TWENTY ONE TAXES, INFLATION, AND INVESTMENT STRATEGY CHAPTER OVERVIEW This chapter presents material on developing a framework for retirement planning. The chapter isbuilt around a set of Excel models that can be used to plan for retirement. The first model ignoresinflation and taxes and subsequent

Chapter 22 - Investors and the Investment Process CHAPTER TWENTY TWO INVESTORS AND THE INVESTMENT PROCESS CHAPTER OVERVIEW This chapter discusses the objectives and constraints of various types of institutional investors andprovides an overview of the investment process from asset allocation to security selection. Theprocess begins with the development of goals and constraints. Example

Chapter 22 - Investors and The Investment Process CHAPTER 22 INVESTORS AND THE INVESTMENT PROCESS 1. The investment objectives of the Masons should be expressed in terms of return and risk. These return and risk preferences should be portrayed in terms of the Masons preferences, their current financial status, and the stage in

Chapter 3: Buying on Margin 1. Suppose you buy 100 shares of stock initially selling for $50, borrowing 25% of the necessary funds from your broker, i.e. the initial margin on your purchase is 25%. You pay an interest rate of 8% on margin loans. a. How much of your own

Chapter 03 - Securities Markets CHAPTER THREE SECURITIES MARKETS CHAPTER OVERVIEW This chapter discusses how securities are traded on both the primary and secondary markets, with coverage of both organized exchanges and over the counter markets. Margin trading and short selling are discussed along with numerical examples. The chapter discusses securities regulations and the self-regulatory

1. Suppose you sell short 100 shares share of stock initially selling for $100 a share. Your initial margin requirement is 50% of the value of the stock sold. You receive no interest on the funds placed in your margin account. a. How much do you need to contribute to

Chapter 03 - Securities Markets CHAPTER 03 SECURITIES MARKETS 1. An IPO is the first time a formerly privately-owned company sells stock to the general public. A seasoned issue is the issuance of stock by a company that has already undergone an IPO. general public. A seasoned issue is the issuance of stock by

Chapter 04 - Mutual Funds and Other Investment Companies CHAPTER FOUR MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES CHAPTER OVERVIEW This chapter describes the various types of investment companies and mutual funds; discussesservices provided by mutual funds; and provides information on expenses and loads associatedwith investment in investment companies. Investment policies of different funds are

Chapter 04 - Mutual Funds and Other Investment Companies CHAPTER 04MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES CHAPTER 04MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES CHAPTER 04 MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES 1. Mutual funds offer many benefits. Some of those benefits include: the ability to invest with small amounts of money, diversification, professional management, low

Chapter 05 - Risk and Return: Past and Prologue CHAPTER FIVE RISK AND RETURN: PAST AND PROLOGUE CHAPTER OVERVIEW This chapter introduces the concept of risk and return. To induce rational investors to acceptmore risk they must be promised a sufficiently large enough return to overcome their riskaversion. The concept of excess returns

Chapter 05 - Risk and Return: Past and Prologue CHAPTER 05 RISK AND RETURN: PAST AND PROLOGUE CHAPTER 05 RISK AND RETURN: PAST AND PROLOGUE CHAPTER 05 RISK AND RETURN: PAST AND PROLOGUE 1. The 1% VaR will be less than 30%. As percentile or probability of a return declines so

Chapter 06 - Efficient Diversification CHAPTER SIX EFFICIENT DIVERSIFICATION CHAPTER OVERVIEW In this chapter, the concept of portfolio formation moves beyond the risky and risk-free asset combinations of the previous chapter to include combinations of two or more risky assets. Theconcept of risk reduction via diversification, created by combining securities with different returnpatterns, is introduced.

Chapter 06 - Efficient Diversification CHAPTER 06EFFICIENT DIVERSIFICATION CHAPTER 06EFFICIENT DIVERSIFICATION CHAPTER 06 EFFICIENT DIVERSIFICATION 1. So long as the correlation coefficient is below 1.0, the portfolio will benefit from diversification because returns on component securities will not move in perfect lockstep. The portfolio standard deviation will be less than a weighted average of the

1. What were the betas of Ford, Toyota, and Honda? Step 1: Calculate the risk premium (excess return) for each firm for every month. [Change cells : 5 5 $ 5] [Select cells: G5:J5; In Home Tab select Fill - Right] [Select cells: G5:J64; Ctrl-D] G B F= - Line 1 is the equation for

Chapter 07 - Capital Asset Pricing and Arbitrage Pricing Theory CHAPTER SEVEN CAPITAL ASSET PRICING AND ARBITRAGE PRICING THEORY CHAPTER OVERVIEWThis chapter first presents the capital asset pricing model (CAPM), an equilibrium pricing modelderived from a set of fairly restrictive assumptions delineated in the PPT. This model wasinstrumental in the development of modern finance

Chapter 07 - Capital Asset Pricing and Arbitrage Pricing Theory CHAPTER 07CAPITAL ASSET PRICING AND ARBITRAGE PRICINGTHEORY CHAPTER 07CAPITAL ASSET PRICING AND ARBITRAGE PRICINGTHEORY CHAPTER 07 CAPITAL ASSET PRICING AND ARBITRAGE PRICING THEORY 1. The required rate of return on a stock is related to the required rate of return on the stock market via beta.

Chapter 08 - The Efficient Market Hypothesis CHAPTER EIGHT THE EFFICIENT MARKET HYPOTHESIS CHAPTER OVERVIEW This chapter examines the concept of market efficiency. We are asking whether securities are, on average, fairly priced according to the benefits they give an investor. If they are then one cannotexpect to consistently earn more than one should

Chapter 08 - The Efficient Market Hypothesis CHAPTER 08THE EFFICIENT MARKET HYPOTHESIS CHAPTER 08THE EFFICIENT MARKET HYPOTHESIS CHAPTER 08 THE EFFICIENT MARKET HYPOTHESIS 1. The correlation coefficient should be zero. If it were not zero, then one could use returns from one period to predict returns in later periods and therefore earn abnormal profits.The phrase

Chapter 09 - Behavioral Finance and Technical Analysis CHAPTER NINE BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS CHAPTER OVERVIEW The chapter describes the developing area of behavioral finance and describes some types ofbehavior that may lead to price movements being predictable. Technical analysis (TA) may beuseful in an environment that features some of the behavior patterns

Chapter 09 - Behavioral Finance and Technical Analysis CHAPTER 09BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS CHAPTER 09BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS CHAPTER 09 BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS 1. Note the following matches: a. Investors are slow to update their beliefs when given new evidence Conservatism bias b. Investors are reluctant to bear losses due to their unconventional

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary

2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2013 by McGraw-Hill Education. This is proprietary