As part of their investment strategy, the Carringtons have decided to put $100,000 into stock market investments and also into purchasing precious metals. The performance of the investments depends on the state of the economy in the next year. In an expanding economy, it is expected that their stock market investment will outperform their investment in precious metals, whereas an economic recession will have precisely the opposite effect. Suppose the following payoff matrix gives the expected percentage increase or decrease in the value of each investment for each state of the economy. Expanding Economic economy recession Stock market investment 25 -15 Commodity investment 10 20 (a) Determine the optimal investment strategy for the Carringtons' investment of $100,000. (Round your answers to the nearest dollar.) stocks %24 commodities 24 (b) What profit can the Carringtons expect to make on their investments over the year if they use their optimal investment strategy? (Round your answer to the nearest dollar.)

Antonio Banderos & Scarves sells headwear that is very popular in the fall-winter season. Units sold are anticipated as follows: October 1,700 November 2,700 December 5,400 January 4,400 14,200 If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of merchandise. She will produce the 14,200 items at a level of 3,550 per month. a. What is the ending inventory at the end of each month? Compare the units sold to the units produced and keep a running total. (Do not leave any empty spaces; input a O wherever it is required. Negative values should be indicated by a minus sign.) October November December January Antonio Banderos & Scarves Units sold Units Produced Change in inventory Ending inventory b. If the inventory costs $4 per unit and will be financed through the bank at 12…

Questions a. - c. refer to the following data.  You estimate a 3-factor return-generating process for 5 large portfolios with the following results.       a. Which two portfolios are functional equivalents according to the Arbitrage Pricing Theory? b. What is the expected return on portfolio B? c. Suppose that the market is currently pricing portfolio E so that its expected return is 8% and pricing portfolio B so that its expected return is 10%.  Describe the forces that will bring about equilibrium according to the APT.

Chapter 6. Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments. An investor wants to invest $75,000 in cryptocurrency next year and approaches them about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $1.00, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 2500 with the client’s investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for first…

An entrepreneur who owns and operates two businesses (A and B) would like to analyze their profitability. They would like your help in the analysis. They give you the annual net profit (in thousands of $) for each business from 2008-2020. Table 1: Annual Net Profits for Businesses A and B Business Year Profit Business Year Profit 2008 -50 2008 -10 2009 57 2009 30 2010 71 2010 27 2011 64 2011 22 2012 60 2012 21 2013 50 2013 20 A 2014 41 2014 24 2015 59 2015 24 2016 71 2016 32 2017 71 2017 36 2018 74 2018 37 019 81 20 40 2020 97 2020 49 a. Suppose you want to graph the distribution of profits. Explain why using only one stem- plot might not be optimal for the analysis. b. Describe the correct stemplot to use. Generate this stemplot. Explain your steps. What can you say about the distribution from this stemplot? c. When are stemplots useful? And why is that? d. Suppose that instead of having 26 observations you have 200 observations. What graph should you generate? e. What other type of…