Ben would like to invest in gold and is aware that the returns
on such an investment can be quite volatile.
Use the following table of states, probabilities, and returns and
calculate the coefficient of variation for the investment?
(Round intermediate calculations and answer to 5
decimal places, e.g. 0.07680.)
| Probability | Return |
| Boom | 0.1 | 39 % |
| Good | 0.2 | 25 % |
| Ok | 0.3 | 10 % |
| Level | 0.2 | 7 % |
| Slump | 0.2 | -10 % |
| Coefficient of variation |
In: Finance
You work for a breakfast cereal manufacturer. Your job is to decide if the new machinery is overfilling the cereal boxes. You take a sample of 37 randomly selected boxes and find that the mean weight for the sample is 1.6 lbs with sample standard deviation 0.3 lbs. The boxes are supposed to weigh 1.5 lbs. Conduct a hypothesis test at the α = 0.01 significance level. Be sure to state your conclusion in context.
In: Statistics and Probability
The government has implemented a new policy to support the price of barley at $5.68/bu. If the barley market equilibrium price is $3.52/bu, the equilibrium quantity of barley is 1,117.00 million bu, the elasticity of supply is 0.3, and the elasticity of demand is -0.75, then what is the new quantity supplied and the new quantity demanded at the support price? How much barley would the government need to buy to keep the price supported at $5.68/bu?
In: Economics
You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 for each of the next 3 years. After that, the dividends will grow at the sustainable growth rate until infinity. a. Calculate the sustainable growth rate assuming the company generates a rate of return of 20% on its equity and maintain a plowback ratio of 0.3. b. Assuming investors expect a 12% rate of return on the stock, what is the price of the stock today?
In: Finance
In the market A the price a company charges per product is $ 20 and its marginal cost is $ 10. In market B, another company sells a product at $ 30 and its marginal cost is $ 20. i) Who has greater market power company A or company B? ii) If we now know that the elasticity of demand is -2 in the market A and -0.3 in the market B. Who has greater market power? Why?
In: Economics
1) Why is codon bias important?
2) If you had a bacterial cell in a solution of sodium at 0.5 M outside the cell and 0.8 M inside the cell and K+ at 0.3 M outside the cell and 0.5 M inside the cell. If this is an antiporter, with the sodium coming into the cell as the as potassium (K+) moves out of the cell, which molecule sodium or potassium provides the energy for this transporter? How do you know?
In: Biology
Customers at a fast-food restaurant buy both sandwiches and drinks. The mean number of sandwiches is 1.5 with a standard deviation of 0.5. The mean number of drinks is 1.45 with a standard deviation of 0.3. The correlation between the number of sandwiches and drinks purchased by the customer is 0.6. If the profit earned from selling a sandwich is $1.50 and from a drink is $1, what is the expected value and standard deviation of profit made from each customer.
In: Statistics and Probability
Consider the Cobb-Douglas production function ?=??^??^??^? where ?, ?, ?, ? are positive constants and ?+?+?<1. Let ? be the amount of labor, ? the amount of capital, and ? be the amount of other materials used. Let the profit function be defined by ?=?−(??+??+??) where the costs of labor, capital, and other materials are, respectively, ?, ?, and ?.
Determine whether second order conditions for profit maximization hold, when the profit function is defined by ?=?−(30?+20?+10?) with ?=5?^0.3?^0.4?^0.2.
In: Economics
Given the following information, please estimate the expected return and risk for the portfolio
|
Security |
Security 1 |
Security 2 |
Security 3 |
|
E(R) |
0.015 |
0.02 |
0.05 |
|
Weight |
33% |
33% |
34% |
|
Security 1 |
Security 2 |
Security 3 |
|
|
Security 1 |
Var=0.05 |
Corr=0.5 |
Corr=0.3 |
|
Security 2 |
Var=0.06 |
Corr=0.6 |
|
|
Security 3 |
Var=0.07 |
In: Finance
Consider the following 2016 data for Newark Hospital (in millions of dollars)
| Simple Budget | Flexible Budget | Actual Results | |
| Revenues | $4.7 | $4.8 | $4.5 |
| Costs | 4.1 | 4.1 | 4.2 |
| Profit | 0.6 | 0.7 | 0.3 |
a. Calculate and interpret the two profit variances
b. Calculate and interpret the two revenue variances.
c. Calculate and interpret the two cost variances.
d. how are the variances related
Answer a-d.
In: Finance