Laura James is the head portfolio manager for Nati...

Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted highreturns relative to its peer group over the past seven years. Much of National’s recent success is from itsinvestments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.

Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford, has increased its market share in an increasingly competitive industry.

James is constantly reviewing economic forecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampen consumers’ enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding” the market with many new models.

Part 3)

Assume domestic automakers are growing at a rate of –2%. Ford expects to increase its market share by 0.5%. What is Ford’s growth rate?

A)1.5%.

B)-3.0%.

C)-1.5%.

D)3.0%.

Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted highreturns relative to its peer group over the past seven years. Much of National’s recent success is from itsinvestments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.

Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford, has increased its market share in an increasingly competitive industry.

James is constantly reviewing economic forecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampen consumers’ enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding” the market with many new models.

Part 4)

Suppose instead that Ford’s growth of firm sales is expected to be –3% and the growth of industry sales is 1%. What is Ford’s expected change in market share?

A)3%.

B)-3%.

C)-4%.

D)4%.

Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted highreturns relative to its peer group over the past seven years. Much of National’s recent success is from itsinvestments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.

Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford, has increased its market share in an increasingly competitive industry.

James is constantly reviewing economic forecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampen consumers’ enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding” the market with many new models.

Part 1)

Assume an industry exhibits tendencies of “regression toward the mean.” This could mean all of the followingEXCEPT:

A)profits are high and competition increases from other firms in the industry.

B)profits increase as firms enter the industry.

C)profits are low and firms flee the industry.

D)prices could increase or decrease depending on the level of profits.

Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted highreturns relative to its peer group over the past seven years. Much of National’s recent success is from itsinvestments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.

Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford, has increased its market share in an increasingly competitive industry.

James is constantly reviewing economic forecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampen consumers’ enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding” the market with many new models.

Part 6)

How would the auto industry most likely be affected by the business cycle? The industry is most likely to:

A)lead the business cycle.

B)not be affected.

C)perform. best during boom times.

D)perform. well during recovery.

Laura James is the head portfolio manager for National Fund, a U.S. based mutual fund with a well-respected track record. National’s primary focus is on large-cap domestic equities, and the fund has consistently posted highreturns relative to its peer group over the past seven years. Much of National’s recent success is from itsinvestments in the U.S. automobile industry, which have posted extraordinary returns due to a favorable economic scenario. Over the past seven years, the U.S. economy has been expanding, foreign competition has not met consumer expectations, and oil prices have remained low. These factors have contributed to an increase in market share for the domestic producers (at the expense of foreign competitors), and the result has been strong earnings for the top U.S. automakers.

Ford Motor Company, in particular, has enjoyed tremendous success in this environment. Ford has capitalized on the trend toward bigger vehicles, particularly sport utility vehicles (SUVs), and has outperformed the other domestic auto makers. Ford jumped on the SUV bandwagon early, and established its dominance. Other domestic auto makers followed, with foreign producers being the last to embrace the trend. Ford, has increased its market share in an increasingly competitive industry.

James is constantly reviewing economic forecasts and industry data in order to assess the expected performance of the investments in National’s portfolio. Due to changes in economic policy and recent volatility in energy prices, James now believes that current market conditions exhibit signs of contraction (recession). In addition, the automobile sector may be facing additional negative factors. In particular, James has concerns regarding the SUV segment of the automobile industry. Although she believes they will remain popular, she is concerned that the market may be reaching a point of saturation. In addition, volatile energy prices may dampen consumers’ enthusiasm for large vehicles. Lastly, foreign competitors have increased efforts toward the production of SUVs, thus “crowding” the market with many new models.

Part 2)

In a recessionary environment, an automaker such as Ford would be expected to:

A)produce more higher end vehicles.

B)maintain the same product mix as 5 years ago.

C)gain market share if it produces high end vehicles.

D)produce more lower end vehicles.

WASHINGTON--Laura Straub is a very worried woman. Her job is to find families for French teenagers who expect to live with American families in the summer.

"We have many children left to place: 40 out of 75," said Straub, who works for a Paris-based foreign-exchange program called LEC.

When exchange programs started 50 years ago, family life was more accommodating. For one thing, more mothers stayed home.

But now, increasing numbers of women work outside the home. Exchange-student program have struggled in recent years to sign up host families for the 30, 000 teenagers who annually come from abroad to spend an academic year in the US, as well as the thousands more who take part in summer programmers.

School systems in many parts of the US, unhappy about accepting non-taxpaying students, have also strictly limited the number of exchange students they accept. At the same time, the idea of hosting foreign students is becoming less exotic(异国情调的).

In searching for host families, who usually receive no pay, exchange programs are increasingly broadening their appeals to include everyone from young couples to retires.

"We are open to many different types of families," said Vickie Weiner, eastern regional director for ASSE, a 25-year-old program that sends about 30, 000 teenagers on academic-year exchange programs worldwide.

For elderly people, exchange students" keep us young-they really," said Jean Foster, who is hosting 16-year-old Nina Porst from Denmark.

Foreign teenagers come to American families with the purpose of ______.

A．finding their parents in America

B．Finding good jobs in America

C．learning the culture of America

D．enjoying the life of America

Laura was married for 6 months. Her husband was using drugs. She didn't want her son or her unborn baby to live that way, but she was afraid to ask her hushand to leave. She left him a note instead. After reading the note, Laura's husband waited for her to come home and then beat her and her son.

Laura had little education and she never had a good paying job. She was ashamed to ask for help from the police, courts or women's shelters. Sometimes her husband was very nice to her. She decided to try harder so her children could have a home and a father. Laura joined a church and told a priest about her problem.

But her huband kept using drugs and hurting the family. Finally, she told her husband she loved him, but they should live apart for a while. He beat her again. The priest came over to talk to her. He asked the husband to go out for a while. Laura packed up her things and left home with her son. The next day she lost the baby. Her husband went to jail.

Laura got a lot of help from groups that help women who have been beaten. Now she is in college, has her own apartment and works on special projects at a women's shelter. "We got out, and it changed life for me and my child. You can do it. You can break the cycle," Laura said.

Laura felt her children shouldn't live the old way when she was______.

A．pregnant

B．taking drugs

C．just out of work

D．attending university