Consider the following stock information about Tencent and HSBC
| State of economy | Probability of State of economy | Returns if state occurs | ||
| Tencent | HSBC | |||
| Bad | 0.3 | -10% | -5% | |
| Good | 0.7 | 15% | 12% |
a. What’re the expected return on each stock?
b. What’re the standard deviation on each stock?
c. The risk free rate is 1.5%. Based on the CAPM, If Tencent’s
market beta is 1.5, what’s the beta of HSBC?
d. If you invested 65 percent in Tencent and 35 percent in HSBC,
what is your portfolio expected return? The standard
deviation?
e. Given the portfolio information in (d) and beta information in
(c), what is the portfolio’s market beta?
In: Finance
Question 5
Consider the following stock information about Tencent and HSBC
|
State of Economy |
Probability of State of Economy |
Returns if State Occurs |
|
|
Tencent |
HSBC |
||
|
Bad |
0.30 |
-10% |
-5% |
|
Good |
0.70 |
15% |
12% |
In: Finance
Navigate to the threaded discussion and respond to the following prompts:
How is policy practice similar to and different from planned changed at the micro level?
What social policies are in place should your clients need protection from oppression and discrimination?
What social policies impact your clients' interaction with their social environment?
How can you observe and learn from the testimony of professionals about the social policies being considered in your state?
In: Psychology
A new advertising program involves placing small screens on the back of taxi front seats in order to run several advertisements continuously. The theory is that riders give their undivided attention to these ads during the entire trip. To understand the potential of the advertising program, advertisers would like to first learn about the length of time of taxi rides. Random samples of the taxi ride times (in minutes) in two cities were obtained. Please assume that the distributions are normal. The summary data are given in the following table. You will not need to use the information from all the rows. Please provide three decimal places for all work and answers unless explicity mentioned otherwise.
| Length of Taxi Ride (minutes) | n | x̄ | s |
|---|---|---|---|
| San Diego | 28 | 20.32 | 6.191 |
| Phoenix | 28 | 15.39 | 5.773 |
| San Diego - Phoenix | 28 | 4.93 | 8.119 |
a) Should this situation be analyzed via a two-sample independent or two-sample paired method? Note that you will only get one try to get this question correct.Please explain the correct answer. If this is a paired situation, please state the common characteristic that makes these data paired.
b) What is the alternative hypothesis for this situation?Please explain the correct answer.
c) Is there any evidence to suggest the true mean lengths of the taxi rides are different in the two cities? Use α= 0.01.
i) Calculate the test statistic. Be sure that the information for San Diego is first and the information for Phoenix is second.
ii) Calculate the p-value. Please submit 4 decimal places.
iii) Write the complete four steps of the hypothesis test below.
iv) Please show all of the code for part c) below.
d) Calculate the 99% confidence interval or bound for the mean. If you are calculating a bound, type 10000 to indicate ∞.
e) Interpret the interval or bound calculated above. In addition to the interpretation, please state the critical value.
f) Please show all of the code for part d) below.
g) In practical terms, does the data imply that the true lengths of taxi rides are different in the two cities? Please explain your reasoning. This part uses the information from parts c) and d). However, if your explanation only involves inferential statistics, you will receive 0 points.
h) What would change in this analysis if the cities were reversed; that is, we used Phoenix – San Diego instead of San Diego - Phoenix? Would the conclusion change? Please explain your answer.
In: Statistics and Probability
Ratio analysis is important to all businesses regardless of product or service sold. Each industry has averages benchmarks in which to compare your companys’ individual performance. Please think about and answer the following questions. Remember, these questions are asking for you to be creative and answer the question, ‘HOW’, I am looking for real possibilities that you might try to accomplish in ‘your’ company.
1. Choose EITHER a service or product that you are producing and selling. Tell me about your product or service company.
2. Your Accounts Receivable Turnover Rate is 4.7; are you please with this? Why or why not? What if anything will you do in the future to attempt to adjust this?
3. The Return on Equity is 11%, the Return on Total Assets is 8%. What does this tell me about the company? Is this a good situation to be in? Why or why not?
4. Explain how a vertical analysis and a horizontal analysis differ. Give examples of when you would use each one.
In: Accounting
Ratio analysis is important to all businesses regardless of product or service sold. Each industry has averages benchmarks in which to compare your companys’ individual performance. Please think about and answer the following questions. Remember, these questions are asking for you to be creative and answer the question, ‘HOW’, I am looking for real possibilities that you might try to accomplish in ‘your’ company.
1.Choose EITHER a service or product that you are producing and selling. Tell me about your product or service company.
2.Your Accounts Receivable Turnover Rate is 4.7; are you please with this? Why or why not? What if anything will you do in the future to attempt to adjust this?
3.The Return on Equity is 11%, the Return on Total Assets is 8%. What does this tell me about the company? Is this a good situation to be in? Why or why not?
4.Explain how a vertical analysis and a horizontal analysis differ. Give examples of when you would use each one.
In: Accounting
2. Suppose that a box is known to contain 50 red and 25 blue marbles. Two marbles are to be drawn in succession. The first marble is set aside and its color noted. It is not placed back into the box before the second marble is drawn.
a. Sketch a probability tree which represents this situation.
b. What is the probability that the second marble is red, if the first marble is red?
c. If the second marble is blue, what is the probability that the first marble is red?
In: Statistics and Probability
In: Economics
The city of Lakeland is troubled by its heavy peanut shell pollution problem. Being the home to the largest peanut farming company in the area, the peanut supply is plentiful. Lakeland residents buy peanuts and drop the shells all over the city.
To eliminate the problem, Lakeland has decided to impose a tax on the consumers that buy the peanuts.
As an economist, detail your observations about this story and the effectiveness of this policy.
In: Economics
In: Economics