Given the following information: Asset A B C Weight E(r) Sigma 0.3 1.487% 6.344% 0.5 2.078% 6.353% 0.2 1.66% 7.616% == PAB 0.313, PBC = 0.374, PAC = 0.321 What is the expected return of the portfolio?
Q: Find the area under the standard normal curve to the right of z=1.97. Round your answer to four…
A: The objective of this question is to find the area under the standard normal curve to the right of…
Q: None
A: Step 1: Given informationThe mean of the distribution is 34 ounces.The standard deviation of the…
Q: 10: 10.1-10.3 K Construct a scatterplot for the given data. X 0.33 0.92 y 0.5 0.49 0.36 0.29 0.08…
A: Steps to make a scatterplot using ExcelStep 1: Copy the data into…
Q: Problem 1. The response time in millisecond was determined for three different types of circuits in…
A: Comment: As per the our company guidelines we are supposed to answer only three subparts. Kindly…
Q: te the speed of exe
A: Datast given :y(satisfaction level)x(speed of…
Q: A sample of 12 cigarette brands is selected and the total nicotine contents (in %) in the sample are…
A: a)It is assumed that is the population mean of nicotine content in cigarettes.The sample size is…
Q: Consider the data set (4, -4, 9, 4, 7, 2, 7, -2, -7). (a) Find the first quartile. (b) Find the…
A:
Q: 2 13. Let X1,..., Xn ~ iid N(0, T) and consider the hypotheses Ho: T≥ TO VS H₁T<TO- (a) Find the…
A: Given that
Q: A certain insecticide kills 60% of all insects in laboratory experiments. A sample of 6 insects is…
A: The objective of this question is to find the probability that exactly 2 out of 6 insects will…
Q: company supplies a tool for pouring cold medicine into bottles in such a way that the standard…
A: Suppose that the population standard deviation of dispense amount of new process is .In a new…
Q: 3. Someone rolled 100 dices(6 sided) on the table and got 200 spots in total. What would be the most…
A: Given that,No. of rolled Total number of spots
Q: Section 8.2 Homework x + //cypresscollege.instructure.com/courses/29586/assignments/814916 Question…
A: d) Probability statement: P(X ≤ 0.09 * 245) ≈ P(X ≤ 22.05) Using statistical software and tables,…
Q: None
A: Step 1:Given data : Sample size n=49Sample mean xˉ=490Sample standard deviation s=98 Step 2:we need…
Q: Question 8 20 15 10 5 A1 B1 B2 For the graph above: 1) is the A main effect significant (Y or N)? 2)…
A: Based on the graph, we can try to evaluate the significance of the main effects and interactions,…
Q: 16) At one college, the GPA's are Normally distributed with a population standard deviation of 0.6.…
A: Hi! Thank you for the question. As you have posted multiple sub-parts, as per our policy, we have…
Q: None
A: To determine if it's appropriate to use the normal distribution for probabilities, we typically need…
Q: The mean test score of a sample of 28 students in a Statistics class is 85, with a standard…
A: The sample mean is 85, the standard deviation is 7 and the sample size n is 28.
Q: None
A: Calculations for the ANOVA Summary Table.1. Total Sum of Squares (SST):…
Q: Q.5. Find the median if the mean and mode are given as 35 and 30 respectively?
A: Step 1: When the mean and mode are given, then the median can be computed by the empirical…
Q: A certain insecticide kills 70% of all insects in laboratory experiments. A sample of 14 insects is…
A: From the provided information,A certain insecticide kills 70% of all insects in laboratory…
Q: roblem 1 If the population parameters are μ = 7 and σ = 1: a) Compute the z score for the lowest…
A: A normal distribution is a distribution whose data follows a bell-shaped curve. The standardized…
Q: The College Board SAT college entrance exam consists of two sections: math and evidence-based…
A: To solve this problem, we'll proceed with the following steps:Perform a paired t-test since the data…
Q: Recent polls indicate that if a federal election would be held today, 35% of Canadian voters would…
A: Note:Hi there! Thank you for posting the question. As there are multiple sub parts, according to our…
Q: Match the correlation coefficients with their scatterplots. Select the letter of the scatterplot…
A: It is needed to match the given correlation coefficients with the scatter plots.
Q: A researcher wishes to estimate the proportion of adults who have high-speed Internet access. What…
A: Given,Margin of error, E = 0.04Confidence level, C = 99% = 0.99
Q: In a large introductory statistics course at one university, 26% of the students are Biology majors,…
A: The objective of this question is to find the probability that a randomly selected student from a…
Q: The managing director of a consulting group has the accompanying monthly data on total overhead…
A: The monthly overhead cost and billable hours data are shown as follows.Overhead CostBillable…
Q: The following sample observations were randomly selected: (Round the final answer to 4 decimal…
A: The data on x and y is given below,xy1124151971722192102414121213
Q: Use the Regression tool on the accompanying wedding data, using the wedding cost as the dependent…
A: The provided information is as follows:The total number of observations is .Wedding cost is the…
Q: In a sample of 15 randomly selected high school seniors, the mean score on a standardized test was…
A: Step 1: Identify the formula for t-value (a t-distribution will be used since only the sample…
Q: x if 0 < x ≤ 45 if 45 < x ≤ 60 1350 f(x)=60-x 450 0
A: The random variable X denotes the delivery time within a 60-minute window for DHL home delivery.The…
Q: 21) Professor Zuro surveyed a random sample of 420 statistics students. One of the questions was…
A:
Q: Suppose that a recent poll found that 53% of adults believe that the overall state of moral values…
A:
Q: Gn. Don't provide handwriting solution
A: The correct option is 270.Here's why this is the right answer and why the others are…
Q: For each problem, select the best response. (a) You have data for many years on the average price of…
A: (a) The information regarding the dependent and independent variables is given.(b) The information…
Q: Find the value for z if x = 2.3, p = 1.9, σ = 0.2
A:
Q: You wish to test the following claim (H₁) at a significance level of a = 0.05. Hou= 81.3 H₁ 81.3 You…
A: We have tested the hypothesis.H0:μ=81.3Vs H1:μ≠81.3level of significanceα=0.05The population is…
Q: 13.Given the following data: Number of observations = 100 Arithmetic Mean = 180 Variance = 324 The…
A: Given information are:Number of observations is n=100.Arithmetic mean is μ=180.Variance is…
Q: << S Fast-Food Bills for Drive-Thru Customers A random sample of 48 cars in the drive-thru of a…
A:
Q: B. Your process has a normal histogram with mean located at 10 mm, 1s points at 9.9 and 10.1 mm, 2s…
A: Consider the give information in which a process has a normal histogram with mean located at 10 mm.
Q: Which formula will have a display value of 5? Group of answer choices =QUOTIENT(5,26)…
A: The objective of the question is to identify which formula will yield a display value of 5. The…
Q: NOTE VOTE VOTE Out of 600 people sampled, 42 preferred Candidate A. Based on this estimate, what…
A: Given,Sample size , n = 600 Number of people preferring candidate A , x=42
Q: A list of positive and negative numbers are in A2 through A400, and the square root of the absolute…
A: The objective of the question is to find the correct Excel function that will calculate the square…
Q: None
A: the given graph is Histogram histogram used for identify the shape of data.we can easily see that…
Q: 3. A variables sampling plan (VSP) for defectives is required for a process with two-sided spec…
A: a. Design the VSP assuming that the population standard deviation is known. Step 1: First, we must…
Q: Consider a Poisson random variable with μ = 3.5. Use the Poisson formula to calculate the following…
A:
Q: 2???
A: The z-score is a measure of how many standard deviations an element is from the mean.The formula for…
Q: A statistical hypothesis is a conjecture about a population Result: 0,00 of 1,00 Your answer:…
A: Step 1:A statistical hypothesis is a statement or conjecture about one or more characteristics of a…
Q: 5. The mean and variance of a Binomial variable X are 4 respectively 4 and Find P(X ≥ 3).
A: The question is about binomial distribution.Given :Mean = E(X) = 4.Variance = V(X) =4/5.
Q: Find the proportion X of individuals who can be expected to respond to a certain mail-order…
A: The solution has been attached below:
Step by step
Solved in 2 steps
- ( Previous Ne CAPM The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 11.5% (i.e. an average gain of 11.5%) with a standard deviation of 38.5%. A return of 0% means the value of the portfolio doesnt change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. (a) What percent of years does this portfolio lose money, i.e. have a return less than 0%? (b) What percent of years does this portfolio return more than 15%? (c) What percent of years does this portfolio return between 18% and 35%? (d) What is the cutoff for the highest 40% of annual returns with this portfolio? Submit answer M US V 0 10: acerThe accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). Year Rate of Return of Company 1 Rate of Return of Company 21996 0.203 0.3981997 0.310 0.5101998 0.267 0.4101999 0.195 0.4362000 -0.101 -0.0602001 -0.130 -0.1512002 -0.234 -0.3572003 0.264 0.3282004 0.090 0.2072005 0.030 -0.0142006 0.128 0.0932007 -0.035 0.027 (j) Plot residuals against the rate of return of Company 1. Does the residual plot confirm that the relation between the rate of return of Company 1 and Company 2 is linear? Yes or No? (k) Are there any years where the rate of return of Company 2 was unusual? Yes or No?Hi! I was working on the question below: The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn’t change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. And question (a) looks like: What percent of years does this portfolio lose money, i.e. have a return less than 0%? I got a z-score of -0.4455, which corresponds to the p value of 0.3264 on the z-table; I don't understand why the correct answer should be 0.3280 as said by one of the solutions, and I cannot locate such a number on the z-table. Thank you so much!
- A stock has monthly returns of 9%, 22%, 15%, and 28%. What is the stock's geometric average return?The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn’t change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. What percent of years does this portfolio lose money, i.e. have a return less than 0%? What is the cutoff for the highest 15% of annual returns with this portfolio?The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. (please round answers to within one hundredth of a percent) (a) What percent of years does this portfolio lose money, i.e. have a return less than 0%? (b) What is the cutoff for the highest 15% of annual returns with this portfolio?
- Given the monthly returns that follow, find the R2, alpha, and beta of the portfolio. Compute the average return differential with and without sign. Do not round intermediate calculations. Round your answers to two decimal places. Month Portfolio Return S&P 500 Return January 5.8 % 6.1 % February -2.9 -3.7 March -1.9 -1.4 April 2.4 2.0 May 0.6 0.0 June -1.0 -0.7 July 0.1 0.8 August 1.2 1.6 September -0.8 -0.6 October -3.1 -3.5 November 2.6 2.2 December 0.3 0.2 R2: Alpha: % Beta: Average return difference (with signs): % Average return difference (without signs) %Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio. Apple Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 135.6974 129.4100 156.6900 116.3600 148.7600 12.11% 2020 95.3468 75.0875 136.6900 56.0925 132.6900 80.75% 2019 52.0640 39.4800 73.4125 35.5475 73.4125 86.16% 2018 47.2634 43.0650 58.0175 36.7075 39.4350 -6.79% 2017 37.6378 29.0375 44.1050 29.0050 42.3075 46.11% 2016 26.1510 26.3375 29.5625 22.5850 28.9550 10.03% 2015 30.0096 27.3325 33.2500 25.7800 26.3150 -4.64% 2014 23.0661 19.7546 29.7500 17.8494 27.5950 37.72% 2013 16.8798 19.6082 20.3604 13.9475 20.0364 5.42% 2012 20.5732 14.6868 25.0750 14.6868 19.0062 31.40% 2011 13.0002 11.7704 15.0800 11.2614…A stock has monthly returns of 4%, 5%, 2%, and -3%. Its geometric average return is closest to: O 195 O 2.43 O 3.36 O 4.17
- Q3. Suppose that the market default rate for bonds is given by 0.01, i.e., the probability the market believes that the company may not be able to pay the owner of the bonds is 0.01. Now a credit default swap (CDS) is sold at fair price $ 0.01 per unit. Ackman expects that the true default rate is 0.05, not 0.01. Ackman bought 67 billion units of CDS at the price $ 0.01 per unit. a. Suppose that Ackeman's expectation about the default rate is not correct. I.e., the true default rate for bonds is given by 0.01. Find the cost of the purchase. Find the expected payoff. Find the profit. b. Suppose that Ackeman's expectation is correct. Find the cost of the purchase. Find the expected payoff. Find the profit.Create embedded formulae which generate statistical properties of the portfolio upon insertion of the weights. Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio. Amazon Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 3315.9774 3186.6300 3731.4100 2951.9500 3444.1500 5.75% 2020 2680.8551 1898.0100 3531.4500 1676.6100 3256.9300 76.26% 2019 1789.1929 1539.1300 2020.9900 1500.2800 1847.8400 23.03% 2018 1641.7262 1189.0100 2039.5100 1189.0100 1501.9700 28.43% 2017 968.1670 753.6700 1195.8300 753.6700 1169.4700 55.96% 2016 699.5231 636.9900 844.3600 482.0700 749.8700 10.95% 2015 478.1373 308.5200 693.9700 286.9500 675.8900 117.78% 2014 332.5510 397.9700 407.0500 287.0600 310.3500 -22.18% 2013…You are also given the following table of :average returns over the last 50 years T-Bills T-Bonds Stocks GeometricArithmetic GeometricArithmetic GeometricArithmetic 0.037 0.042 0.059 0.064 0.108 0.117 If you were asked to compute the equity risk premium for Steel Products, using the historical approach, what would your best estimate be? The largest investor in Steel Products is the owner/founder who owns 20% of the stock. Is she also the marginal investor in this stock? If your answer is yes write 1 and if your answer is No write 2 in the box.
