Questions
Consider the following scenario analysis: Rate of Return Scenario Probability Stocks Bonds Recession 0.3 -5 %...

Consider the following scenario analysis:

Rate of Return

Scenario

Probability

Stocks

Bonds

Recession

0.3

-5

%

14

%

Normal economy

0.6

15

10

Boom

0.1

24

5

Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds.

  1. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.)

b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

  

c. Would you prefer to invest in the portfolio, in stocks only, or in bonds only? Explain the benefit of diversification.

In: Finance

Use 5 months moving average and exponential smoothing method (using alpha=0.3) on the following sale of...

Use 5 months moving average and exponential smoothing method (using alpha=0.3) on the following sale of Maggi. You are supposed to forecast the sale of Maggi in the 13th Month. Compare whether there is any difference in forecast based on two methods and Comment.

Period (Month)

Actual Sale of Maggi

1

1100

2

800

3

1000

4

1050

5

1500

6

750

7

700

8

650

9

1400

10

1200

11

900

12

1000

13

In: Economics

A pitched baseball (m=0.3 kg) reaches a catcher’s glove travelling at a velocity of 28 m/s....

A pitched baseball (m=0.3 kg) reaches a catcher’s glove travelling at a velocity of 28 m/s. Calculate the ball’s: A) momentum, B) kinetic energy. How much impulse is required to catch the ball? If the hand moves backward 32cm while the person is catching it, what is the average force applied to the ball? How much time will it take before the ball stops? What is the average power of this contact?

In: Physics

While fuel taxes and fuel economy standards can both be effective in increasing the number of...

While fuel taxes and fuel economy standards can both be effective in increasing the number of miles per gallon in new vehicles, clearly explain why fuel taxes are superior means of reducing emissions from automobiles.

In: Economics

Discuss one reason why a cap and trade market is more difficult to implement for water...

Discuss one reason why a cap and trade market is more difficult to implement for water versus air emissions

Discuss one reason why economists prefer a gas tax to a standard on miles per gallon of vehicles

In: Economics

The variation of the spectral transmissivity of a 0.6cm thick glass window is 0.92 in the...

The variation of the spectral transmissivity of a 0.6cm thick glass window is 0.92 in the wavelength range from 0.3-3micrometer. Determine the average transmissvity of this window for solar radiation at T=5800K. Also, determine the amount of solar radiation transmitted through the window for incident solar radiation of 650W/m2.

In: Other

A computer program is tested by 5 independent tests. If there is an error, these tests...

A computer program is tested by 5 independent tests. If there is an error, these tests will discover it with probabilities 0.1, 0.2, 0.3, 0.4, and 0.5, respectively. Suppose that the program contains an error. What is the probability that it will be found
a. by at least one test?
b. by at least two tests?
c. by all five tests?

In: Statistics and Probability

2. Let X be a continuous random variable with PDF ?fx(x)= cx(1 − x), 0 <...

2. Let X be a continuous random variable with PDF ?fx(x)= cx(1 − x), 0 < x < 1,

0 elsewhere.

(a) Find the value of c such that fX(x) is indeed a PDF.

(b) Find P(−0.5 < X < 0.3).

(c) Find the median of X.

In: Statistics and Probability

If Susie is late for school one particular day of the week, the probability she arrives...

If Susie is late for school one particular day of the week, the probability she arrives on time the next day is 0.8. If she arrives on time one day, the probability she arrives late the following day is 0.3. Susie was on time on Monday. What is the probability she was late on Thursday?

In: Statistics and Probability

describe how to make one liter of the following solution: 0.3 M mannitol (FW=182), 0.02 M...

describe how to make one liter of the following solution: 0.3 M mannitol (FW=182), 0.02 M KPO4, 0.01 M KCl, 0.005 M MgCl2. You have the following stocks... 1 M KPO4, 1 M KCl, 1 M MgCl2.

In: Biology