Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) 2) EGRH Inc. DMP, Ltd. AVERAGE OF YEA STOCK RETURN PRICE (x₁) YEAR STOCK RETURN PRICE AVERAGE OF RETURNS (x) RETURNS (x₁) Jan-2021 PO. Jan-2021 P8.30 Feb-2021 P8.60 Mar-2021 P9.14 Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Apr-2021 P13.30 May-2021 P13.74 Jun-2021 P14.80 Jun-2021 PO.495 Jul-2021 P16.94 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Aug-2021 P13.70 Sep-2021 P14.88 Oct-2021 0.375 Oct-2021 P15.30 Nov-20 PO.325 Nov-2021 P14.30 Dec-2 P0.330 Dec-2021 P15.52 SD (8) = SD (8) =

Pax World Balanced is a highly respected, socially responsible mutual fund of stocks and bonds. Vanguard Balanced Index is another highly regarded fund that represents the entire U.S. stock and bond market (an index fund). The mean and standard deviation of annualized percent returns are shown below. The annualized mean and standard deviation are for a recent 10-years period.†.   If x represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view, which fund appears to be better? Explain. A. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Pax fund appears to be better because the CV is smaller. B. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Vanguard fund appears to be better because the CV is smaller.     C. Since the CV is s/x we can say that the CV represents the risk per unit of return; the Pax fund…

Suppose that an accounting firm does a study to determine the time needed to complete one person's tax forms. It randomly surveys 200 people. The sample mean is 22.3 hours. There is a known population standard deviation of 7.0 hours. The population distribution is assumed to be normal. Find the following. (Enter exact numbers as integers, fractions, or decimals.) (i)     x =  (ii)     ? =  (iii)     n =

A population has mean u=30 and standard deviation o=7. (A) Find the z-score for a population value of 9. (B) Find the z-score for a population value of 51. (C) What number has a z-score of -2.3

Suppose that the borrowing rate that your client faces is 9%. Assume that the equity market index has an expected return of 13% and standard deviation of 25%, that rf = 5%. Your fund manages a risky portfolio, with the following details: E(rp) = 11%, p = 15%. What is the largest percentage fee that a client currently lending (y 1)? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 1 decimal place.) y 1

The lifetime of a certain electronic component used in a laptop computer can be modeled by an exponential distribution with a mean of 4 years, or ux B = 4 years. = (a) Compute the standard deviation of the above distribution. SD(X) = 0x = years (use two decimals in your answer) (b) What can you say about the shape of the distribution of X? The distribution of X is ? (c) You randomly pick a laptop. Find the probability that the certain electronic component will last between 1 years and 4 years. P(1 ≤ X ≤ 4) = = (Use four decimals in your answer) (d) If the electronic component in the laptop you chose in (c) has lasted at least 4 years, what is the probability it will last in total at most 8 years? (Use four decimals in your answer) (e) The manufacturer of this electronic component wishes to have a guarantee. This guarantee will state that 3% of components will be replaced free of charge. At what lifetime should the manufacturer set the guarantee, in years? years (Use two decimals in…

From generation to generation, the mean age when smokers first start to smoke varies. However, the standard deviation of that age remains constant at around 2.1 years. A survey of 38 smokers of this generation was done to see if the mean starting age is at least 19. The sample mean was 18.1 with a sample standard deviation of 1.3. Do the data support the claim at the 5% level? (i) Alpha (Enter an exact number as an integer, fraction, or decimal.)? =

6. Scientists estimate that the distribution of the life span of the Galápagos Islands giant tortoise is approximately normal with mean 100 years and standard deviation 15 years. Based on the estimate, which of the following is closest to the age of a Galápagos Islands giant tortoise at the 90th percentile of the distribution? (A)  80 years (B)  115 years (C)  120 years (D)  125 years (E)  130years

If the expected return on the market is 8% and the risk for your rate is 4%. What is the expected return for a stock with a beta equal to 2.00?