4. Consider the following time series:

a. Construct a time-series plot. What type of pattern exists in the data? Is there an indication of a seasonal pattern? (10 points)

b. Use multiple linear regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if quarter 1, 0 else; Qtr2 = 1 if quarter 2, 0 else; Qtr3 = 1 if quarter 3, 0 else. (20 points)

c. Compute the quarterly forecasts for next year. (10 points)

Rita is the owner of Rita’s Osteria. She wants to study the growth of her business using simulation. She is interested in simulating the number of customers and the amount ordered by customers each month. She feels that the number of customers is normally distributed, with a mean of 800 and a standard deviation of 45. The bill for each customer is $65 and uniformly distributed, with a maximum increase of 8% and a minimum decrease of 5%. The changes of the bills are incremental, i.e. each change is based off the average bill of the previous month. Formulate a simulation, computing the mean total revenue and the standard deviation in one year.

Need Chi-Square Test for Independence to determine if eating healthy and exercising reduces diastolic blood pressure.

The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a​ Blu-ray player made by the company over the past 12 months are satisfied with their products. What is the population of​ interest?

A.

all the customers who have ever bought a​ Blu-ray player made by the company

B.

all the customers who have bought a​ Blu-ray player made by the company and brought it in for repair over the past 12 months

C.

all the customers who have used a​ Blu-ray player over the past 12 months

D.

all the customers who have bought a​ Blu-ray player made by the company over the past 12 months

1. What are the three main types of Securities traded on public markets? Briefly describe each.

2. Briefly explain how CDO tranches work and why they are used.

3. Briefly explain going ‘short’ in market trading.

Sunny Valley Stables Inc. was established on April 1, 2017. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant financial controller. The following transactions for April 2017 are provided for your review.

1. Received contributions from five investors of $200,000 in cash ($40,000 each).
2. Built a barn for $142,000; paid half the amount in cash on April 1 and signed a three-year note payable for the balance.
3. Provided $15,260 in animal care services for customers, all on credit.
4. Rented stables to customers who cared for their own animals; received cash of $13,200.
5. Received from a customer $1,500 to board her horse in May, June, and July (record as Deferred Revenue).
6. Purchased hay and feed supplies on account for $3,210.
7. Paid $840 in cash for water utilities incurred in the month.
8. Paid $1,700 on accounts payable for previous purchases.
9. Received $1,000 from customers on accounts receivable.
10. Paid $4,000 in wages to employees who worked during the month.
11. At the end of the month, prepaid a two-year insurance policy for $3,600.
12. Received an electric utility bill for $1,200 for usage in April; bill will be paid next month.

Required:
1. & 2. Record in the T-accounts the effects of each transaction for Sunny Valley Stables in April, referencing each transaction in the accounts with the transaction letter. All accounts begin with zero balances. Show the unadjusted ending balances in the T-accounts.

3. Prepare an unadjusted trial balance as of April 30, 2017.

Match the following terms with the appropriate definitions A - I:

Question 26 options:

Measuring standalone risk using realized data

Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock.

Five years of realized returns for Blue Llama Mining Inc. (Blue Llama) are given in the following table:

Also note that:

Given this return data, the average realized return on Blue Llama Mining Inc.’s stock is   .

The preceding data series represents   of Blue Llama’s historical returns. Based on this conclusion, the standard deviation of Blue Llama’s historical returns is   .

If investors expect the average realized return on Blue Llama Mining Inc.’s stock from 2012 to 2016 to continue into the future, its expected coefficient of variation (CV) is expected to equal   .

Please answer the matching question below to the best of your knowledge. Thank you in advance for your participation.
Matching questions   

Treasury stock

Stock split

Record date

Outstanding stock

Retained earnings

Publicly held corporation

Preferred stock

Legal capital

Cumulative dividend

Par value stock

 
1-  Net income that is retained in the business.
2- The amount per share of stock that must be retained in the business for the protection of corporate creditors.   

 Capital stock that has contractual preferences over common stock in certain areas.   

  A corporation that may have thousands of stockholders and whose stock is regularly traded on  a national securities market.      

 Capital stock that has been issued and is being held by stockholders.      

Capital stock that has been assigned a value per share in the corporate charter.    

 A corporation's own stock that has been issued,  fully paid for, and reacquired by the corporation but not retired.

The issuance of additional shares of stock to stockholders accompanied by a reduction in the par or stated value per share.  

 9.   The date when ownership of outstanding shares is determined for dividend  purposes.      

A feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before                                                           common stockholders receive any dividends.                  

TF 302 HOMEWORK GUIDELINES
You are required to conduct an analysis on Turkish Derivatives Market by emphasizing the following points
1- What is VIOP?
2- What is a derivative?
3- What are the underlying assets?
4- Why should I invest on the products at VIOP?
5- What are the hours that VIOP products can be traded?
6- How does margin and collateral work with products traded at VIOP?
7- What does it mean a “risky account”?
8- What is the tax treatment for profits and losses from derivatives transactions on VIOP contracts?
Important Points:
The report must be written in Times New Roman, 12 pt. and 1.5 line space and justified format. The minimum page for the report must be 3 without the references. You are required to add the references at the end of the report.