You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic:

1. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)
   1. r_i = 3.0% + (9.4%)b_i
   2. r_i = 3.2% + (10.6%)b_i
   3. r_i = 3.2% + (9.4%)b_i
   4. r_i = 3.0% + (10.6%)b_i
   5. r_i = 1.4% + (9.8%)b_i

   -Select-IIIIIIIVVItem 1

2. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.

     %

3. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 17%, and its estimated beta is 1.5. Should Kish invest in the new company?

   The new stock -Select-should notshouldItem 3 be purchased.

   At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.

     %

You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 5%, and you believe the following probability distribution for future market returns is realistic:

1. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)
   1. r_i = 7.0% + (8.5%)b_i
   2. r_i = 5.0% + (8.6%)b_i
   3. r_i = 8.8% + (9.2%)b_i
   4. r_i = 8.8% + (8.6%)b_i
   5. r_i = 5.0% + (9.2%)b_i

   -Select-IIIIIIIVVItem 1

2. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.

     %

3. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 15%, and its estimated beta is 1.4. Should Kish invest in the new company?

   The new stock -Select-should or shouldn't be purchased.

   At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.

     %

You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic:

1. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)
   1. r_i = 1.5% + (11.8%)b_i
   2. r_i = 3.0% + (9.5%)b_i
   3. r_i = 2.7% + (10.7%)b_i
   4. r_i = 2.7% + (9.5%)b_i
   5. r_i = 3.0% + (10.7%)b_i

   -Select-

2. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.

     %

3. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 14%, and its estimated beta is 1.4. Should Kish invest in the new company?

   The new stock -Select-should or should not

   At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.

     %

You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic:

1. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)
   
   1. r_i = 5.7% + (9.5%)b_i
   2. r_i = 6.0% + (9.1%)b_i
   3. r_i = 4.0% + (10.4%)b_i
   4. r_i = 6.0% + (9.5%)b_i
   5. r_i = 5.7% + (9.1%)b_i
   
   -Select-IIIIIIIVVItem 1
   
2. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
3. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 14%, and its estimated beta is 1.5. Should Kish invest in the new company?
   The new stock -Select-should notshouldItem 3 be purchased.
   
   At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.
     %

. Brightly blarney but blissfully blas´e bloodhound Sheerluck Hopeless has trained herself to recognize at a glance suspect heights and weights. From experience she has found that her estimation errors tend to follow approximately Normal distributions. Hopeless tests her estimation abilities on five London constables: her estimation errors, in cm and kg, are given in the table below: Hopeless Errors Heights (cm) -0.6 -0.2 0.2 0.5 0.6 Weights (kg) -1.2 -0.7 -0.1 0.1 0.9 “My compliments, Hopeless!” Dr. Witless puzzled, “To find the probability a thing does NOT happen, how did you describe it?” “Complementary, my dear Witless,” Hopeless rubbed her eyes, bowed her head, and exhaled an uncomplimentary sigh, “Complementary!” a. Find a 95% confidence interval for the mean difference between Sheerluck’s errors in estimating suspect heights and weights. (5) b. Test that there IS a difference between Sheerluck’s mean estimation errors for suspect heights and weights against the hypothesis of NO difference. (25) c. Compare Sheerluck’s estimation errors for heights against weights: i. Draw a simple plots of weight errors (y) against height errors (x). (5) ii. Find the correlation coefficient between Sheerluck’s two types of errors. (5) iii. Find the regression line for weight errors as a function of height errors. (10) iv. Use the coefficient of variation to interpret how well this linear model explains the relationship between Sheerluck’s height and weight estimation errors

You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks:

Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 5%, and you believe the following probability distribution for future market returns is realistic:

1. What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market return.)
   
   1. r_i = 3.8% + (9.2%)b_i
   2. r_i = 3.8% + (7.7%)b_i
   3. r_i = 5.0% + (9.2%)b_i
   4. r_i = 8.5% + (11.0%)b_i
   5. r_i = 5.0% + (7.7%)b_i
   
   -Select ONE
   
2. Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer to two decimal places.
     %
3. Suppose Rick Kish, the president, receives a proposal from a company seeking new capital. The amount needed to take a position in the stock is $50 million, it has an expected return of 14%, and its estimated beta is 1.4. Should Kish invest in the new company?
   The new stock -Select-should notshouldItem 3 be purchased.
   
   At what expected rate of return should Kish be indifferent to purchasing the stock? Round your answer to two decimal places.
     %

The macroeconomy of the TELLA is represented by the following model.

Goods Market

Y=C+I+G+X-M

C=200+0.7(T-T)

T=0.2YI=100-10r

G=150

EX=200

IM=0.1Y

Money Market

Md=1000-6666r

Ms = [(C/D+1)/(C/D+R/D)]H

Where C/D=0.2; R/D=0.2 and H=200

Use this model to answer the following questions:

1) The value of the money multiplier in this model is:

A) 2.0

B) 2.5

C) 3.0

D) 3.5

E) 4.0

2) The value of the expenditure multiplier in this model is:

A)1.54

B)4.23

C)2.51

D)1.85

E) 3.50

3) The value of autonomous

expenditure in this model is:

A) Not determinable.

B) 549.4 billion $

C) 599.4 billion $

D) 649.4 billion $

E)  699.4 billion $

4) The value of GDP in this economy is:

A) 1203 billion $

B)  650 billion dollars

C) 1503 billion dollars

D) 950 billion dollars

E) 1703 billion dollars

5) The value of the export balance and the government budget balance is:

A) a trade surplus of 80 billion $ and a budget surplus of 90.6 billion $

B) a trade deficit of 80 billion $ and a budget surplus

of 90.6 billion $

C) a trade deficit of 80 billion $ and a budget deficit of 90.6 billion $

D) a trade surplus of 80 billion $ and a budget deficit of 90.6 billion $

E) It is not possible to calculate these figures from the information provided.

Consider the following multifactor (APT) model of security returns for the Happy Halloween (H) Company.

What do the factor risk premiums imply about the actual values observed for the risk factors?

If the risk-free asset is paying a 3% return, find the expected rate of return on Happy Halloween given the above information.

Suppose the Trick or Treat (T) Company had factor betas of 0.8, 1.2 and 0.6 for interest rate, GDP growth and oil prices, respectively. If you invested 40% of your assets into Happy Halloween and 60% of your assets into Trick or Treat, what would be the expected return of the resulting portfolio. Also calculate the factor betas for this portfolio for each of the factors.

1. The following data are obtained from the current meter gauging of a stream, at a gauging station. Compute the stream discharge using mean section method.

Rating equation of current meter: v = 0.2 N + 0.04, where N = rev./sec, v = velocity (m/sec).                                                                              

In problems 1 – 5, a binomial experiment is conducted with the given parameters. Compute the probability of X successes in the n independent trials of the experiment.

1.         n = 10, p = 0.4, X = 3

2.         n = 40, p = 0.9, X = 38

3.         n = 8, p = 0.8, X = 3

4.         n = 9, p = 0.2, X < 3

5.         n = 7, p = 0.5, X = > 3

According to American Airlines, its flight 1669 from Newark to Charlotte is on time 90% of the time. Suppose 15 flight are randomly selected and the number of on – time flights is recorded.

            a.         Find the probability that exactly 14 flights are on time.

            b.         Find the probability that at least 14 flights are on time.

            c.          Find the probability that fewer than 14 flights are on time.

            d.         Find the probability that between 12 and 14 flights are on time.

            e.         Find the probability that every flight is on time.