. Morgan Asset Management publishes information about financial investments. Between 2002 and 2011 the expected return for the S&P 500 was 5.04% na standard deviation of 19.45% and the expected return over that same period for a Core Bonds fund was 5.78% with a standard deviation of 2.13% (J. P. gan Asset Management, Guide to the Markets). The publication also reported that the correlation between the S&P 500 and Core Bonds is -0.32. You are sidering portfolio investments that are composed of an S&P 500 index fund and a Core Bonds fund. Using the information provided, determine the covariance between the S&P 500 and Core Bonds. Round your answer to two decimal places. If required enter ative values as negative numbers. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a Core Bond fund. Let x represent the S&P 500 and y represent the Core d fund. Round your answers to one decimal place. x + ercentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. ected return ndard deviation Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% invested in a Core bond fund. Let x represent the S&P 500 and y represent the Bond fund. Round your answers to one decimal place. ercentage terms, what is the expected return and standard deviation for such a portfolio? Round your answers to two decimal places. ected return % dard deviation %

The Office Supply Shop estimates that the average demand for a popular ball-point pen is 11,240 pens per week with a standard deviation of 2,947 pens. The average lead time from the distributor is 4.6 weeks, with a standard deviation of 1.7 weeks. (Note that both demand and lead time are variable, i.e. not constant.) If management wants a 98 percent cycle-service level, what should the reorder point be? (Round your answer to the nearest whole number.) 158,682 27

At the end of 2015, 2016, and 2017, the average prices of a share of stock in a portfolio were $34.83, $34.65, and $31.26 respectively. To investigate the average share price at the end of 2018, a random sample of 30 stocks was drawn and their closing prices on the last trading day of 2018 were observed with a mean of 33.583 and a standard deviation of 19.149. Estimate the average price of a share of stock in the portfolio at the end of 2018 with a 95% confidence interval. Compare and Briefly discuss

The inflation adjusted annual return of a diversified asset portfolio is assumed to have a normal distribution with a mean of 3.5% and a standard deviation of 1.25%.  Represent the value for the inflation adjusted annual return that 95% of outcomes would exceed on a diagram and determine this value.

Consider a population of 1024 mutual funds that primarily invest in large companies. You have determined that u, the mean one-year total percentage return achieved by all the funds, is 9.80 and that o, the standard deviation, is 0.50. Complete (a) through (c). a. According to the empirical rule, what percentage of these funds is expected to be within +2 standard deviations of the mean? 95 % b. According to the Chebyshev rule, what percentage of these funds are expected to be within +2 standard deviations of the mean? 75 % (Round to two decimal places as needed.) c. According to the Chebyshev rule, at least 88.89% of these funds are expected to have one-year total returns between what two amounts? Between and (Round to two decimal places as needed.)

A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 19 days yields the following return percentages. 0.28, 1.92, -1.2, 2.78, 1.97,-0.57, 1.46, -0.93, 0.58,-1.41, -1.15, 0.01, -1.49, −0.94, 1.73, 2.07, -0.83, 1.44, -2.28 Send data to calculator If we assume that the returns are normally distributed, find a 90% confidence interval for the mean daily return on this stock. Give the lower limit and upper limit of the 90% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: 0 Upper limit: 0 X

A doctor is using a growth chart for baby girls that indicates a 12-month-old baby girl has a mean weight of 21.1 pounds with a standard deviation of about 2.29 pounds. Assume that the weights are approximately normally distributed. What proportion of 12-month-old baby girls weigh between 19.62 and 22.17 pounds?

Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of  49  and a standard deviation of  16 . The customers with scores in the bottom  15%  are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.

A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 20 days yields the following return percentages. 1.09, -1.09, -0.14,-0.03,1.76,-1.59,-1.46 , 2.13, 1.96, 2.01,-0.91,0.64,-2.41, 1.81, –0.25, -0.46,0.37, -0.21, 1.39,0.68 Send data to calculator Send data to Excel If we assume that the returns are normally distributed, find a 95% confidence interval for the mean daily return on this stock. Then find the lower limit and upper limit of the 95% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: Upper limit: