13. Calculate the expected loss EL if k = $22,000, sigma = 0.7 and D =...

13. Calculate the expected loss EL if k = $22,000, sigma = 0.7 and D = 0.5.

14. A total of 10 units were tested over a 500-hour period. A total of 4 units failed after 10, 20, 70, and 400 hours. The other 6 did not fail during the 500-hour test. Calculate the failure rate.

15. The mean life of a diesel is 250,000 miles, with a standard deviation of 2,500 miles. What is the probability that it will wear out before 248,000 miles.

16. A component has a reliability of 0.99 for 600 hours of normal use. Determine the failure rate.

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orchestra answered 1 year ago

Calculate the value of a bond that is expected to mature in 13 years with a...

Calculate the value of a bond that is expected to mature in 13 years with a 1,000 face value. The interest coupon rate is 8%, and the required rate of return is 10%. Interest is paid anually. State whether the bond is selling at a premium or at a discount.

Stock Beta Expected returns A 1.1 10.50% B 0.8 7.80% C 0.7 7.10% D 1.3 12.20%...

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1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard...

1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard deviation of 26 percent, and Stock I, an international company, with an expected return of 16 percent and a standard deviation of 43 percent. The correlation between the two stocks is -0.5. What is the weight of stock D in the minimum variance portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.) 2. Consider two stocks, Stock D, with an...

1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard...

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13. Calculate the expected loss EL if k = $22,000, sigma = 0.7 and D =...

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Calculate the value of a bond that is expected to mature in 13 years with a...

Stock Beta Expected returns A 1.1 10.50% B 0.8 7.80% C 0.7 7.10% D 1.3 12.20%...

1. Consider two stocks, Stock D, with an expected return of 13 percent and a standard...

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