On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9). Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August 2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes the payment. The spot and forward rates are as follows. Date Spot rate in AUD Forward rate in AUD 1 June 2020 0.19 0.2 30 June 2020 0.2 0.25 1 August 2020 0.3 0.3 Required: a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a he

ue

2. What is your subject?

dge 5 Marks b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020 c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020

Suppose that an investor has a choice between investing in a bond fund (B) and a stock fund (S).

The bond fund has an expected return of E(rB) = 0.06 while the stock fund has an expected return of E(rS) = 0.10. The standard deviation of the bond fund is ?B= 0.12 and the standard deviation of the stock fund is ?S = 0.25.

(a) Calculate the expected return and standard deviation for each of the following portfolio weights. If you are comfortable using EXCEL you can use the “Portfolio Weight Calculator” (located in Cat Courses) to complete the table. When inputting the values do not use decimals (e.g. The expected return of the bond fund is inputted as 6 not 0.06). You do not have to show your calculations.

(b) Plot the expected return and standard deviation of the various portfolios using EXCEL (draw the investment opportunity set). Identify the minimum variance portfolio (MV Portfolio)

(c) Prove that an investor would never choose a portfolio that has a weight of 10% equity fund and 90% bond fund.

1. Philly Sandwiches Inc. has determined the following estimated production volumes for the 7” and 14” Philly cheese steak submarine.

             Production Volumes:

7”   Philly cheese steak submarine = 20,000 units

14” Philly cheese steak submarine = 25,000 units

                               There are three direct materials to be used to produce both submarines. The

                             quantities are as follow:

In addition, the company had the following information about the materials:

1. How many pounds of cheese, steak and onions, the company must buy? (5 points)
2. How much the company will spend (total) to buy all materials it needs? (5 points)
3. If the company had budgeted to spend $65,000 to buy steak and onions, how much it is over (under) budget?                                                                  (5 points)                                                                                
4. If the conversion cost to produce a 7” submarine is $0.65 per unit, how much is the total cost per unit to produce a 7” submarine?                                     (5 points)

Napoleon is contemplating four institutions of higher learning as options for a Master’s in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Napoleon’s ultimate decision. Vanderbilt and Seattle University have comparatively high tuition, which would necessitate Napoleon take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. Northeastern State University and Texas Tech University hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Napoleon gathers his advisory council of Jim and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars.

Suppose that the likelihood for each of scenarios 1 through 3 is 0.3, 0.4, and 0.3, respectively. What is the optimal decision under the EVM criterion?

Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.

a-1. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)

a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)

b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

Exercise 10.2.5: Setting the threshold for biometrics.

A biometric authentication system using fingerprints returns a value between 0 and 1 for each attempted match. The system was tested with 1000 genuine fingerprints and 1000 imposter fingerprints. The histogram shows the numbers of genuine and imposter attempts for different ranges.
Ex: 88 of the 1000 genuine fingerprints returned a value of n between 0.5 and 0.4, while only 3 imposter fingerprints returned a value in the same range.

(a)

Determine the threshold value of n such that less than 1% of imposter attempts are accepted. How many false alarms are generated as a result?

(b)

Determine the threshold value of n such that less than 1% of genuine attempts are rejected. How many imposter attempts are accepted as a result?

(c)

Determine the threshold value of n such that no genuine attempts are rejected. How many imposter attempts are accepted as a result?

This is an assignment for python.

Download the code “

GradeBook.py

”

You will be modifying the code to do the following:

1)

create an empty dictionary named “FinalAverages”

2) In one for loop you will zip all lists together and get their individual members on each iteration. You can name

these what ever you want.

3) on each iteration: Calculate the WEIGHTED average using the weights provided, and then add a new dictionary

value to the dictionary “

FinalAverages

”. The KEY for this dictionary will be the name on this iteration, and the

VALUE will be the average of the student.

4)

Print

the whole

dictionary,

and

then

print

ONLY ”Jack”

5) BONUS: if you create a function that takes an input of the 4 lists, and an output of the appropriate dictionary:

adding 1 point. Your code must then use this function to create the appropriate dictionary, apply the weights

(Store them in that function), and then output the

values you got.

Gradebook.py is:

Students = ['Bill', 'Sue', 'Janet', 'Cindy', 'Ray', 'Jack', 'Barbra', 'Matt', 'Joey', 'Adam', 'Becky', 'Mona']
Exam1 = [100, 80, 26, 45, 89, 65, 92, 75, 76, 15, 80, 50]
Exam2 = [88, 95, 55, 60, 81, 25, 70, 100, 95, 70, 72, 10]
Exam3 = [65, 92, 100, 80, 26, 92, 55, 60, 80, 55, 60, 75]
scaleExamOne = 0.3
scaleExamTwo = 0.3
scaleExamThree = 0.4

A random sample of 9 automobiles of a particular model has a mean of 32 mpg and a standard deviation of 10 mpg. Assume gas mileages are normally distributed. Use this information to compute a 95% confidence interval for the mean miles per gallon obtained by all automobiles of this type.

Round your confidence interval values to the nearest whole number (Do NOT use any decimals in your answer).

The left endpoint of the confidence interval is  , and the right endpoint is  .

How many picograms are in 5.59 × 10–11 grams?

How many micrometers are in 6.36 × 10–5 meters?

How many kilovolts are in 3.48 × 105 volts?

How many nanoliters are in 1.58 × 10–10 liters?

Question 2

While driving your rental car on your trip to Europe, you find that you are getting 8.1 kilometers per liter of gasoline. What does this correspond to in miles per gallon?