|
Rate of return if state occurs |
||||
|
State of economy |
Probability of state of economy |
Stock A |
Stock B |
Stock C |
|
Boom |
0.3 |
0.35 |
0.45 |
0.38 |
|
Good |
0.3 |
0.15 |
0.20 |
0.12 |
|
Poor |
0.3 |
0.05 |
–0.10 |
–0.05 |
|
Bust |
0.1 |
0.00 |
–0.30 |
–0.10 |
5. Consider the following information on three stocks in four possible future states of the economy:
Just For Fun (JFF):
See if you can find the optimal portfolio using the Solver function in MS Excel. To optimize the portfolio, you would want to find the optimal portfolio weights that will minimize the portfolio risk (standard deviation) while achieving a required rate of return (say, 15%). No marks are assigned for this problem, as it is JFF.
In: Finance
A veterinarian is interested in determining whether or not an overweight dog would benefit more from daily 30 minute walks or from 30 minutes of daily play in a dog park. Design an experiment for the veterinarian, using 60 chubby dogs.
In: Statistics and Probability
According to Schaller, Park, & Mueller (2003) Past research has indicated that men report higher levels of racism and ethnocentrism than women. why do men report higher levels of racism and ethnocentrism than women? why not?
In: Psychology
With most customers having a smartphone, mobile apps are becoming an essential tool for hotels and other businesses in hospitality and tourism. If you were an app developer pitching to a hotel, how would you convince them to have one of their own?
In: Accounting
when the National Park Service picks a single
privately owned firm to be the sole seller of food and other Goods
in the US National Parks, this is an example of the creation of
a
A. natural monopoly
B. legal monopoly
C. strategic resource monopoly
In: Economics
Estes Park Corp. pays a constant $1.43 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 9.59 percent, what is the current share price?
In: Finance
The average daily attendance of a small amusement park is 4,219 people. In order to increase the average daily attendance, the park owners decided to lower the price for admissions. For the first 25 days after the highly publicized price reduction the average daily attendance was 4,537. You can assume that the population standard deviation is 674. Assume that these 25 days can be considered a random sample of the days to come and that daily attendance follows a normal distribution.
a.) Test at the 5% level of significance whether the price reduction was effective. Explain your approach (including your hypotheses and test statistic) and conclusion.
b.) How and why would your answer in Part 1 change if the significance level had been 1%? Explain using 1 or 2 sentences.
thank you! :)
In: Statistics and Probability
The Hotel El Politécnico has # 500 rooms. They usually have a cost per room of $ 70.00, plus a fixed cost of $ 5,000.00 per day. Each room is rented for $ 175.00 per day during the summer season. Answer the following questions using the above data:
a) If the Hotel operates at 70% capacity for one day, what is the net profit (gain / loss)?
b) What is the equilibrium point (B. E. P.)? in units, if it operates at full capacity
c) Would you recommend lowering the current price per room to earn $ 40,000, if 20% of the rooms are unoccupied? What would be the new price per room?
d) What should be the variable cost per daily unit to
earn $ 30,000.00; at its 80% capacity?
In: Economics
A traveler wanted to know if the prices of hotels are different in the ten cities that he visits the most often. The list of the cities with the corresponding hotel prices for his two favorite hotel chains is in the table below. Test at the 1% level of significance.
|
Cities |
Hyatt Regency prices in dollars |
Hilton prices in dollars |
|
Atlanta |
107 |
169 |
|
Boston |
358 |
289 |
|
Chicago |
209 |
299 |
|
Dallas |
209 |
198 |
|
Denver |
167 |
169 |
|
Indianapolis |
179 |
214 |
|
Los Angeles |
179 |
169 |
|
New York City |
625 |
459 |
|
Philadelphia |
179 |
159 |
|
Washington, DC |
245 |
239 |
What is the p-value? Round answer to four decimal places (i.e. 0.1234)? Answer
What is your decision? Answerreject the null hypothesisaccept the null hypothesisfail to reject the null hypothesis
In: Statistics and Probability
Sunshine Hotel needs new laundry equipment. There are two alternatives, either buy or lease the equipment. The hotel owner is asking your recommendation to pay less for the equipment.
| Buy ($) | Lease ($) | |
| Cost of equipment | 20,000 | |
| Semi-annual equipment rental | 3,000 | |
| Salvage value after five years | 1,000 | |
| Annual costs: | ||
| Labor | 15,000 | 15,000 |
| Supplies | 1,000 | 1,000 |
| Utilities | 3,000 | 3,000 |
| Interest expense | 1,500 | - |
| Repairs | 200 | - |
Prepare a five-year cost schedule for each alternative (Include only relevant costs).
What is the cost if the owner buys or leases the equipment?
A. Buy: $ 28,500; Lease: $15,000
B. Buy: $ 27,000; Lease: $30,000
C. Buy: $ 27,500; Lease: $30,000
D. Buy: $ 25,100; Lease: $18,000
In: Accounting