Performance of stock screeners. In Exercise 2.44 (p. 71) you learned that stock screeners are automated...

Performance of stock screeners. In Exercise 2.44 (p. 71) you learned that stock screeners are automated tools used by investment companies to help clients select a portfolio of stocks to invest in. The table below lists the annualized percentage return on investment (as compared to the Standard & Poor’s 500 Index) for 13 randomly selected stock screeners provided by the American Association of Individual Investors (AAII).

9.0 -.1 -1.6 14.6 16.0 7.7 19.9 9.8 3.2 24.8 17.6 10.7 9.1

a. Find a 90% confidence interval for the average annualized percentage return on investment of all stock screeners provided by AAII. Interpret the result.

b. Recall that a negative annualized return reflects a stock portfolio that performed worse than the S&P 500. On average, do the AAII stock screeners perform worse or better than the S&P 500? Explain.
c. What assumption about the distribution of the annualized percentage returns on investment is required for the inference, part b, to be valid? Is this assumption
reasonably satisfied?

Expert Solution

From above normal probability plot we see that the normality assumption holds.

milcah answered 2 years ago

how do you determine future performance of the stock price of an S & P company?

Suppose a stock had an initial price of $32 per share, paid a dividend of $2.44...

Suppose a stock had an initial price of $32 per share, paid a dividend of $2.44 per share during the year, and had an ending share price of $29. Compute the percentage total return. Enter the answer in 4 decimals e.g. 0.1234. Calculate the arithmetic average of the following returns. Year Return 1 0.27 2 0.13 3 -0.11 4 -0.09 5 0.08 Enter the answer with 4 decimals, e.g. 0.1234.

Question 1: This question may be completed independently or as a group exercise. You have learned...

Question 1: This question may be completed independently or as a group exercise. You have learned that humans have 46 total chromosomes, and chimpanzees have 48 total chromosomes. Use other textbooks in biological anthropology and biology (or reputable online resources) to find the number of chromosomes in other organisms. Give an organism with considerably more chromosomes than humans. Give an organism with considerably fewer chromosomes than humans. Did your findings surprise you? What did your research suggest about the relationship...

Roslin Robotics stock has a volatility of 30% and a current stock price of $71 per...

Roslin Robotics stock has a volatility of 30% and a current stock price of $71 per share. Roslin pays no dividends. The risk-free interest is 6%. Determine the Black-Scholes value of a one-year, at-the-money call option on Roslin stock. The Black-Scholes value of a one-year, at-the-money call option on Roslin stock is $ _____ . (Round to the nearest cent.)

Find rate of return on your investment if P = $1000 and annual income = $71...

Find rate of return on your investment if P = $1000 and annual income = $71 for 25 years of your business.

General Motors stock performance. (In depth of why there are fluctuations in the stock performance across...

General Motors stock performance. (In depth of why there are fluctuations in the stock performance across 5 years) & What events (in addition to coronavirus) took place that impacted the stock?

Exercise 3 - Listening Styles In your text, you learned that Geier and Downey (1980) believe...

Exercise 3 - Listening Styles In your text, you learned that Geier and Downey (1980) believe that there are six styles of listening: leisure, inclusive, stylistic, technical, empathic, and nonconforming. Each style of listener "hears" only communications that are consistent with his/her style. The purpose of this exercise is to provide you with an opportunity to practice communicating in different ways to different types of listeners. For each of the situations below, indicate how you would speak to each of...

You've learned different methods for measuring performance. Please propose your strategy to measure a student's performance...

You've learned different methods for measuring performance. Please propose your strategy to measure a student's performance in this HR class?

Programing language C++ In this exercise you will explore the performance difference between sequential search and...

Programing language C++ In this exercise you will explore the performance difference between sequential search and binary search. To do so write a program that performs the following tasks: Prompt the user for a file containing 100,000 unsorted integers Read those integers into an array Prompt the user for a search item Search for that item (using sequential search) and report the number of comparisons required. Sort the array. Note that this might take a few minutes. Search for that...

This exercise is a bit more complicated and will be a review of what we’ve learned...

This exercise is a bit more complicated and will be a review of what we’ve learned about lists and dictionaries. The aim of this exercise is to make a gradebook for a group of students. Follow these steps: Consider a list of dictionaries in the following format: students = { "lloyd": { "name": "Lloyd", "homework": [90.0,97.0,75.0,92.0], "quizzes": [88.0,40.0,94.0], "tests": [75.0,90.0] }, "alice": { "name": "Alice", "homework": [100.0, 92.0, 98.0, 100.0], "quizzes": [82.0, 83.0, 91.0], "tests": [89.0, 97.0] }, "tyler": {...

Question