You are considering the two securities shown below. Which of the following statements is uniquely different about Security 4 relative to Security 2? R4 xf RM R₂ Only Security 4 has a positive estimated beta. Security 4 has a higher beta than Security 2. Security 4 has a higher R2 than Security 2. Only Security 4 has a positive estimated alpha. RM
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- A roulette wheel has 30 slots, consisting of 2 blues, 8 whites, and 20 red slots. You will receive P100 if the roulette stops spinning on a blue slot, you will receive P50 on a white slot, but you will be penalized P10 if the roulette stops spinning on a red slot. Let X be the amount you will recieve (or pay). The probaility of receiving P50 is 2/30 or 1/15, and of receiving P50 is 8/30 or 4/15. What is the probability of penalty of P10? 2/3 1/3 -2/3Two pertectly positively correlated securities are combined into a portfolio. One security is expected to returm 10% with a volatility of 20% and the other is expected to return 15% with a volatility of 25% If the portfolio is required to have a (target) volatility of 30%, what is its expected returm? Oa 25% Ob 20% Oc 30% Od 22.5%B. If z show that x + y %3D 3z
- a box contains 5 white balls and 3 black balls. draw two balls without replacement. if x represents the number of white balls and y represents the number of black balls drawn, what is the covariance of x and y?From a population of roughly 35,000, an average of 25 people dine at Samantha's Stupendous Suppers per day. Approximate the proba- bility that on a typical day at least 2 people dine at Samantha's.Assume the betas for securities A, B, and C are as shown here. (Click on the icon here in order to copy its contents of the data table Kbelow into a spreadsheet.) Security ABC Beta 1.57 0.61 -0.21 If you have a portfolio with $10.000 invested in each of Investment A, B, and C, what is your portfolio beta? The bets of your portfolio is (Round to three decimal places)
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