Which of the following statements about ‘Nominal and Real Rates of Return’ covered in the lecture are TRUE:

1. The nominal rate of return is just the actual rate of return received on an investment. The nominal rate of return can be decomposed into returns generated through changes in price and returns generated from income (such as interest, rent or dividends).
2. If the expected real rate of return on an investment is expected to be 4% per annum over the long-run and inflation increases from 2% to 3% per annum, the expected long-run nominal rate of return would be expected to increase from 6% to 7% per annum.

Which of the following statements is LEAST consistent with the forms of human bias in decision-making covered in the lecture material on ‘Human bias and money happiness’?

Which of the following is LEAST likely to explain the ‘Hedonic Treadmill’:

Which

of the following statements about ‘Money and Happiness’ covered in the lecture

are TRUE:

1. The

   positive and curved relationship between income and life-satisfaction is

   consistent with the idea that each additional dollar provides less happiness

   than the previous dollar.

2. Whether

   people in a country think that others are constantly trying to take advantage

   of them (‘rip them off’) affects average levels of life satisfaction.

According

to the lecture content on ‘Happiness and the Brain’, engaging in a mindfulness activity

that involves focusing on slow breathing is MOST likely to be associated with:

Which

of the following situations is MOST consistent with the concept of Eudaimonic

Happiness:

Which of the following statements about Operating Leverage and Risk from the lecture are TRUE:

1. Someone

   with relatively high fixed costs and low variable costs will have a high level

   of operating leverage and a low risk of making a large loss if their income

   falls.

2. Someone

   with relatively low fixed costs and high variable costs will have a low level

   of operating leverage and a high risk of making a large loss if their income falls.

You

have just bought a new motor vehicle for $70,000 and you estimate that it

will have an effective life of 9 years after which it will be worthless (zero

salvage value). What is the depreciation expense over the first year using the straight-line

(Prime Cost) method (to the nearest dollar)?

Which of the following statements about the relationship between the transactions on the Income Statement and Balance Sheet are TRUE:

1. You

   buy a $100 item of clothing on your debit card and you treat the clothing as an

   expense (not an asset). The immediate impact of this transaction at the time of

   purchase involves incurring an expense of $100, a decrease in profit of $100, a

   decrease in assets of $100 and a decrease in wealth of $100.

2. You

   receive $100 in interest on a savings account. The immediate impact of this transaction

   to the time of receiving the interest is an income of $100, an increase in

   profit of $100, an increase in assets of $100 and an increase in wealth of

   $100.

You buy a computer game for $50 using your credit card, receive $90 in wages from your casual job and some investments increase in value by $20 but you do not sell them. Calculate the overall effect of these three events on your CASH FLOW.