Now, don't use the Empirical Rule to answer the same three questions. Be more precise and use the Normal CDF table, giving the percentage (all to 2 decimal places) of PE ratios that fall between. The price-earnings (PE) ratios of a sample of stocks have a mean value of 10.25 and a standard deviation of 2.6. If the PE ratios have a bell shaped distribution

D. 7.65 and 12.85.

Percentage =  %

E. 5.05 and 15.45.

Percentage =  %

F. 2.45 and 18.05.

Percentage =  %

Market efficiency is an important concept in explaining the functioning of financial markets. Empirical researchers have conducted tests on market efficiency using a variety of methods, including serial correlation and portfolio studies.

a) Fama and French (1992, 1993) observed that two classes of stocks tended to outperform the overall market. Identify the classes of stocks Fama and French tested and briefly explain how these factors may be used to explain portfolio returns.  

b) Outline how you would apply the portfolio study methodology used by Fama and French to test whether firms with faster sales growth are more likely to be over-valued.  

c) Tests of serial correlation are often used to examine whether the market is weak-form efficient. Discuss what type of serial correlation you would expect to find in very short-term price changes.

1.

Which of the following is true?

2

Which of the following statements concerning dividends is not true?

3.

An investor buys a call option to purchase 200 shares. The strike price=$15, Current stock price=$10, Buying price of the call option=$1.5 (per share). At the expiration of the option the price of the share is $17. What is the total gain or loss of the investor?

4.

Modigliani and Miller argue that the dividend decision __________.

5.

Vertical mergers are those in which the participants are

6.

A merger is a combination of businesses in which

7.

Suppose a stock exists with a price of $42, and a call option on the stock exists with an exercise price of $36. What is the approximate minimum value of the call option?

8.

Which of the following are commonly cited reasons for Mergers and Acquisitions?

9.

All of the following are common motives for a merger or acquisition except for

10.

The cost of debt to a corporation at any point in time is:

Please do it by type not pics.

1.The empirical tit of ttte production model: The table below reports per capita GDP and capital per person in the year 2014 for 10 countries. Your task is to fill in the missing columns of the table.

a.Given the values in columns 1 and 2, fill in columns 3 and 4. That is, compute per capiiz GDP and capital per person relative to the U.S. values.

b.In column 5, use the production model (with a capital exponent of 1/3) to compute predicted per capita GDP for each c‹runtry relative to the United States, assuming there are no TFP differences.

c.In column 6, compute the level of TFP for each country that is needed to match up the model and the data.

d.Comment on the general results you find.

In 204 I dollars                                  n•Iativ* to the U.fl. values (If.6. = 4 )

Select from the literature a couple of leading papers on empirical efficient market hypothesis testing (at least one from the US stock market, and at least one from a foreign stock market - possibly from an emerging economy) and discus them thoroughly, while addressing the issue of market maturity and regulations affecting information efficiency and technical efficient of the stock market in question. You discussion should include the following parts:

- importance of the study,
- implications of the paper,
- contribution of the paper to the EMH testing,
- methodology and data used in the research,
- interpretations of findings,
- limitations and recommendation for further research.

Consider the two empirical models for excess returns (Ri-Rf) of stocks A and B. The risk free rate (Rf) over the period was 6%, and the market’s average return (Rm) was 14%. Stock A Stock B Estimated market models Ri-Rf= 1% + 1.2(Rm – Rf) Ri-Rf = 2% + 0.8(Rm – Rf) Standard deviation of excess returns 21.6% 24.9% Find the following for each stock: i) Alpha ii) Sharpe ratio iii) Treynor ratio

Ann, owner of Terrific Burgers in Weatherford, Texas decides to estimate the empirical demand function for her firm’s burgers. She collects data on the last 24 months of Burger sales from her own firm records. She knows the price she charged for her Burgers during that time period, and she also has kept a record of the prices charged by one of her close competitor, Stormy Burgers.

Ann is able to obtain average household income figures from the Small Business Development Center in Weatherford. The only other competitor in the neighborhood is the local branch of Burger King selling their Whoppers. Ann is able to find the price of their Whoppers for the last 24 months from advertisements in old newspapers. She adjusts her price and income data for the effects of inflation by deflating the dollar figures, using a deflator she obtained from the Survey of Current Business. To measure the number of buyers in the market area (N), Ann collected data on the number of residents in Weatherford. As it turned out, the number of residents had not changed during the last 24 months, so Ann dropped N from her specification of demand equation.

Since the price of burgers at Terrific Burgers in Weatherford set by Ann- she possesses a degree of market power- she can estimate the empirical demand equation using linear regression.

Ann first estimates the following linear specification of demand using the 24 monthly observations she collected:

Q= a + b (P) +c (M) + d (P_SB) + e P(_W)

Where:

Q= sales price of a Burger at Terrific Burgers

P= price of a burger at Terrific Burgers

M= average annual household income in Weatherford, TX

P_SB= price of a burger at Stormy Burgers

P_W= price of a Whopper at Burger King

The following computer printout shows the results of her least-squares regression:

Ann decides to calculate estimated demand elasticities at values of P, M, P_SB, and P_W that she feels “typify” the Burgers market in Weatherford for the past 24 months.

These values are:

P= $7.50, M= 25 (in thousands),  P_SB= $8.25, and P_W = $4.50       

Using this information, answer the following questions:

1. Estimate the total number of sales using the equation specified above with the empirical results
2. Calculate own-price elasticity, income elasticity and cross-price elasticities with Stormy Burgers and BK Whopper.   Besides statistical skills, Ann also comprehends economic s and is relying on you to make interpretations of these results.
3. Using economic rationale and terminology, make recommendation to Ann :

• If she should raise or lower the price she is selling? Explain why or why not
• The impact of the economy heading into a recession on Ann’s sales. Explain.
• Who is her main competitor – Stormy Burgers or Burger King? Hint: Use the magnitude of the cross-price elasticities

1. Empirical probability: A statistical model was developed to predict whether passengers on the Titanic ship survived base on their information such as age, number of siblings and spouses were on the ship, sex, the fare class, etc. The table below presents the predicted results getting from the model compared with the actual record:

1. If picking a random passenger, what is the probability that the passenger survived according to the model or predicted by the model?

2. If picking a random passenger, what is the probability that the passenger did not survive according to the real record?

3. If a passenger was predicted as a survivor, what is the probability that the passenger actually survived according to the actual record?

4. If a passenger was predicted as a non-survivor, what is the probability that the passenger actually did not survive according to the actual record?  

2. You are conducting a statistical study in order to estimate the average number of people who have contacted a patient with a positive test for the COVID-19 virus in the US over the last three weeks. Describe a detailed plan for collecting the data for your study. Your answer should be in paragraph​        form and be sure to include the following information:  
   1. The target population
   2. The study variable(s); the variable(s)’s type (quantitative or qualitative); the variable(s)’s level of measurement (nominal, ordinal, interval, or ratio)
   3. The study sample:
      1. Your sample size
      2. Data collection method (survey, simulation, etc)
      3. Sample technique (clustered, stratified, simple random, etc)
      4. Possible errors if any  

In Lesson Seven you've learned to convert raw scores to standard scores and used the empirical rule to determine probabilities associated with those standard scores.

Random Decimal Fraction Generator

Here are your random numbers:

0.1613
0.8590
0.7911

1. Use the random decimal fraction generator at Random.org, linked here, to generate a list of three fractions with four decimal places(LIST random decimal fraction generator  IS ON TOP). Assume those decimal fractions represent probability values associated with z-scores. Then use the standard normal table to look up the z-score that is closest to matching with that probability. List them below. (3 points)
   1. probability value (generated fraction) =
   2. associated z-score =
   3. probability value (generated fraction) =
   4. associated z-score =
   5. probability value (generated fraction) =
   6. associated z-score =
2. Use another random decimal fraction generator at Random.org, linked here, to generate a list of ten two-digit random numbers between 10 and 30. Calculate the z-score of the median of the data set. (3 points)
3. What does the z-score of the data set median just above tell you about the shape of the distribution? How do you know this? (3 points)
4. If you were to take repeated random samples of n = 5 from the data set just above, what would be the expected value of the mean of the sampling distribution of sample means? (3 points)
5. Considering the set of ten two-digit random numbers above as a population, calculate the standard error of the mean for the samples in question 4. (3 points)

The compounds listed here are often found in many natural flavors and scents. Calculate the empirical formula for each compound.

ethyl butyrate (pineapple oil): C , 62.04% ; H , 10.41% ; O , 27.55%

Express your answer as a chemical formula.

methyl butyrate (apple flavor): C , 58.80% ; H , 9.87% ; O , 31.33%

Express your answer as a chemical formula.

benzyl acetate (oil of jasmine): C , 71.98% ; H , 6.71% ; O , 21.31%

Express your answer as a chemical formula.