Two stocks can be combined to form a riskless portfolio if the correlation of -1.0. Risk is not reduced at all if the two stocks have correlation of +1.0. In general, stocks have correlation less than 1.0, so the risk is lowered but not completely eliminated.
True or False
Using a regression to estimate beta, we run a regression with returns on the stock in question plotted on the Y axis and returns on the market portfolio plotted on the X axis. The intercept of the regression line, which measures relative volatility, is defined as the stock’s beta coefficient, or b.
True/False
In: Finance
At 35 degrees C, Kc = 1.6x10^-5 for the reaction:
2NOCl(g),<--> 2NO(g) + Cl2(g)
Calculate the concentrations of all species at equilibrium for each of the following origional mixtures.
a. 1.00 mol NOCl in a 1.0 L container
b. 1.00 mol NO and 0.50 mol Cl2 in a 1.0 L container
c. 1.00 mol NO and 0.75 mol Cl2 in a 1.0 L container
The answers are: a. [NOCl]= 1.0M, [NO]= 0.032M, [Cl2]= 0.016M; b. [NOCl]= 1.0M, [NO]= 0.032M, [Cl2]= 0.016M; c. [NOCl]= 1.0M, [NO]= 0.00080M, [Cl2]= 0.25M
Please show work!!
In: Chemistry
The units of parts per million (ppm) and parts per billion (ppb) are commonly used by environmental chemists. In general, 1 ppm means 1 part of solute for every 106 parts of solution. (Both solute and solution are measured using the same units.) Mathematically, by mass, ppm can be expressed as shown below. ppm = µg solute g solution = mg solute kg solution In the case of very dilute aqueous solutions, a concentration of 1.0 ppm is equal to 1.0 µg of solute per 1.0 mL of solution, which equals 1.0 g of solution. Parts per billion is defined in a similar fashion. Calculate the molarity of each of the following aqueous solutions. (a) 5.2 ppb Hg in H2O (b) 1.9 ppb CHCl3 in H2O (c) 36.0 ppm As in H2O (d) 0.22 ppm DDT (C14H9Cl5) in H2O
In: Chemistry
If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below are possible? Consider each situation independently and assume the risk free rate is 5%:
|
Option (A) |
Portfolio |
Expected Return |
Beta |
|
Portfolio A |
18.0% |
1.2 |
|
|
Market Portfolio |
18.0% |
1.2 |
|
Option (B) |
Portfolio |
Expected Return |
Beta |
|
Portfolio A |
17.5% |
2.5 |
|
|
Market Portfolio |
10.0% |
1.0 |
|
Option (C) |
Portfolio |
Expected Return |
Beta |
|
Portfolio A |
27.0% |
1.0 |
|
|
Market Portfolio |
15.0% |
1.0 |
|
Option (D) |
Portfolio |
Expected Return |
Standard Deviation |
|
Portfolio A |
20.0% |
0.12 |
|
|
Market Portfolio |
15.0% |
0.10 |
|
Option (E) |
Portfolio |
Expected Return |
Beta |
|
Portfolio A |
18.0% |
1.2 |
|
|
Market Portfolio |
18.0% |
1.0 |
A) Option A.
B) Option B.
C) Option C.
D) Option D.
E) Option E.
In: Finance
BETA AND REQUIRED RATE OF RETURN
a. A stock has a required return of 9%; the risk-free rate is 5%; and the market risk premium is 3%. What is the stock's beta? Round your answer to two decimal places.
b. If the market risk premium increased to 10%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk premium. If the stock's beta is greater than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium. If the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premium. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market risk premium. -Select-
c. New stock's required rate of return will be %. Round your answer to two decimal places.
In: Finance
2-Methylisoborneol (MIB), a metabolite of algal production, is a common taste- and odor-causing compound in surface waters. Adsorption on activated carbon is one treatment option. A series of batch adsorption equilibrium tests were performed using powdered activated carbon (PAC) as the sorbent. Plot the data according to the Langmuir isotherm. The water of the foul smelling Reservoir has an MIB concentration of 1.5 mg/L. The treated water is to have a MIB concentration of 0.030 mg/L.
|
Flask No. |
Initial MIB conc. (Co) (m g/L) |
Equilibrium MIB conc. (Co) (m g/L) |
PAC Dosage (Do) (mg/L) |
|
1 |
1.0 |
0.01 |
20 |
|
2 |
1.0 |
0.05 |
10 |
|
3 |
1.0 |
0.10 |
7 |
|
4 |
1.0 |
0.50 |
2 |
|
5 |
5.0 |
1.0 |
10 |
|
6 |
5.0 |
2.0 |
6 |
|
7 |
5.0 |
3.0 |
3 |
Determine if the desired effluent quality can be achieved by adsorption.
Determine the adsorptive capacity (qe) of the carbon at this level of effluent quality.
Determine the dose of PAC required to treat a demand of 0.15 m3/s of this water.
In: Chemistry
A stock has a required return of 12%, the risk-free rate is 5.5%, and the market risk premium is 3%.
-Select-IIIIIIIVVItem 2
Stock's required rate of return will be %.
In: Finance
A stock has a required return of 12%, the risk-free rate is 6.5%, and the market risk premium is 2%.
-Select-IIIIIIIVVItem 2
Stock's required rate of return will be %.
In: Finance
MANAGING ASHLAND MULTI-COMM SERVICES
The AMS technical services department has embarked on a quality improvement effort. It’s first project relates to maintaining the target upload speed for its Internet service subscribers. Upload speeds are measured on a standard scale in which the target value is 1.0. Data collected over the past year indicate that the upload speed is approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, one upload speed is measured. The upload speed is considered acceptable if the measurement on the standard scale is between 0.95 and 1.05
1. Assuming that the distribution has not changed from what it was in the past year, what is the probability that the upload speed at any time is:
a. Less than 1.0?
b. Between 0.95 and 1.0?
c. Between 1.0 and 1.05?
d. Less than 0.95 or greater than 1.05?
2. The objective of the operations team is to reduce the probability that the upload speed is below 1.0. Should the team focus on process improvement that increases the mean upload speed to 1.05, or on process improvement that reduces the standard deviation of the upload speed to 0.75? Explain.
In: Math
A stock has a required return of 8%, the risk-free rate is 3%, and the market risk premium is 3%.
In: Finance