Suppose you live in a world with only two risky assets: Amazon and Facebook (you can label these assets A and F, respectively). Furthermore, suppose these assets have the following expected returns and standard deviations:

a)If the correlation of Amazon and Facebook returns is equal to 0.3, what is the covariance of their returns?

Use Excel to calculate the expected return and standard deviation of the risky portfolio for different combinations of weights for A and F. In other words, set up your Excel spreadsheet to calculate the following:

etc… (for additional combinations of weights from w_A = -0.5 to w_A = 1.5)

Please include a screenshot of the filled-in table with your problem set solutions.

a)What is the optimal risky portfolio assuming r_f = 2% as in part e? Label this point P on your graph from part d.(Hint: Use Solver to choose the risky portfolio weights that maximize the Sharpe Ratio of the CAL created by combining the risky portfolio and the risk-free asset.)

b) Draw in the CAL through the optimal portfolio from part a.

c) What is the expected return and standard deviation of the complete portfolio that invests y=0.4 (i.e. 40%) in the optimal risky portfolio and 1-y = 0.6 (i.e 60%) in the risk-free asset.

d) If your utility from investing in the market is given by U = Er - 12σ² – 10σ⁴ , what is your optimal complete portfolio? (Hint: Use Solver to find the % of your complete portfolio in the risky asset (i.e. y) that maximizes your utility.)

e)What is a possible intuition of including the σ⁴ term in the utility function in part b?

27.58=0.5⋅(10^{(4.53678−(1149.360/(x+24.906))})+(0.3⋅(10^{(4.37576−(1175.581/(x−2.07)​)})+(0.2⋅(10^{(4.3281−(1132.108/(x+0.918)​)})

Hello We dont know how to solve for x in the above equation.

Calculate to the accuracy of 10%

Suppose you measure the terminal voltage of a 0.2-Volt alkaline cell having an internal resistance of 0.3 Ω by placing a 8.6-kΩ voltmeter across its terminals. Find the terminal voltage U.

5. Solve equation y'+2y=2-e^-4t, where y(0)=1

6. Use Euler’s method for a previous problem at t=0, 0.1, 0.2, 0.3. Compare approximate and the exact values of y.

firm’s stock has a 0.2 possibility to make 40.00% return, a 0.50 chance to make 10% return, and a 0.3 possibility to make -10% return. Calculate standard deviation

a.   0.03

b.   0.04

c.   0.05

d.   0.06

Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 115,000 Assembly 80,000 Maintenance 49,000 — 0.3 0.4 0.3 Cafeteria 33,000 0.6 — 0.2 0.2 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance.(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) b. The allocations are made in the reverse order (starting with Cafeteria).(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

Cost allocation to:

From: Maintenance Cafeteria Machining Assembly

Service department costs

Maintenance

Cafeteria

Total $ $ $ $

You are conducting a multinomial Goodness of Fit hypothesis test for the claim that the 4 categories occur with the following frequencies:

HoHo : pA=0.3pA=0.3;  pB=0.2pB=0.2;  pC=0.2pC=0.2;  pD=0.3pD=0.3

Complete the table. Report all answers accurate to two decimal places, unless otherwise specified.

What is the chi-square test-statistic for this data? (Round to two decimal places)
χ2=χ2=

What is the P-Value? (Round to four decimal places)
P-Value =


For significance level alpha 0.01,

What would be the conclusion of this hypothesis test?

• Fail to reject the Null Hypothesis
• Reject the Null Hypothesis

Report all answers accurate to three decimal places.

Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr. Golff has developed the following estimates of the cash flows for these properties.

Palmer Heights Yearly Aftertax Cash Inflow (in thousands)

Probability $ 80 0.2

85 0.2

100 0.2 1

15 0.2

120 0.2

Crenshaw Village Yearly Aftertax Cash Inflow (in thousands)

Probability $ 85 0.2

90 0.3

100 0.4

110 0.1

c. Which apartment complex has more risk?

b. What is the coefficient of variation for each apartment complex?

a. Find the expected cash flow from each apartment complex. (Enter your answers in thousands (e.g, $10,000 should be enter as

Consider a 2850-lb automobile clocked by law-enforcement radar at a speed of 85.5 mph (miles/hour). If the position of the car is known to within 5.0 feet at the time of the measurement, what is the uncertainty in the velocity of the car?