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.
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 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. 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 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 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 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 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 < 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
In: Statistics and Probability
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