Required Rate of Return AA Corporation's stock has a beta of 0.7. The risk-free rate is 3%, and the expected return on the market is 12%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.

Suppose that X is a binomial random variable with parameters n=20 and p=0.7.

Choose a wrong statement about the random variable X.

Suppose the correlation between first year GPA and second year GPA is 0.7. Assuming a close to linear relationship between GPAs in first year and in second year, what is the approximate average z-score in second year of students who had a z-score of 1.5 in their first-year GPA?

What is the average first-year z-score of students who have a z-score of 1.5 in their second-year GPA?

It seems that, on average, students who do well in first year do better than average in second year but not quite as well as they did in first year. And students who do better than average in second year did, on average, better than average in first year but not quite as well as they did in second year. Whichever way you go, from first year to second year, or from second year to first year, it looks like the grades are getting closer to the average.

Is this a contradiction? Is there an explanation for it? If you need a diagram to help explain it, go ahead a draw one

Yan Corp has equity beta of 0.7 and 8 million ordinary shares, at the current market price of RM5. The company also has debt with nominal value of RM100 per bond at 6% coupon rate, which will be redeemed in 5 years’ time at nominal rate. The bonds have a total nominal value of RM10 million. Interest on the bonds has just been paid and the current market value of each bond is RM106.30. Yan plans to acquire a business – HAM – in which it is different to its existing business operations. The equity beta of HAM is 1.1 and the company has an equity market value of RM48 million, while the market value of the debt is RM10 million. The risk-free rate of return is 5% per year and the average return on the stock market is 12% per year. Both companies pay corporation tax rate of 30% per year.

(a) Calculate the current weighted average cost of capital of Yan.

(b) Calculate a cost of equity which could be used in appraising the new project.

Coke consumption per capita (gallon per capita) in Beijing is:

Coke = – 0.7*Coke’s Price + 3.8*Income + 1.0*Pepsi’s Price

Variables are expressed as percentage changes over years.

1. Explain the demand behavior of Coke drinkers in Beijing?
2. Is that true when someone saying that “Coke drinkers in Beijing follow the law of demand”? Why or why not?
3. The Beijing government was going to allow supermarkets to sell Coke. Lobbyists argue that the proposed law would help the local governments to balance their budgets. The argument is that the Coke prices will fall, people will buy more Coke and consequently local governments have more tax revenues. Giving the above estimated demand function, do you support their argument? In addition, the governments knew that Coke and Pepsi are substituted.

Expected Returns: Discrete Distribution

The market and Stock J have the following probability distributions:

1. Calculate the expected rate of return for the market. Round your answer to two decimal places.
   %
   
   Calculate the expected rate of return for Stock J. Round your answer to two decimal places.
   %
   
2. Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.
   %
   
   Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.
   %

You purchased XYZ stock at the closing price on December 31, 2015, and sold it after the dividend had been paid at the closing price on January 26, 2016. Given the following Price and Dividend data for XYZ, your dividend yield for this period is closest to ______________ and your capital gains rate (yield) for this period is closest to _______________________.

The market and Stock J have the following probability distributions:

a. Calculate the expected rate of return for the market. Round your answer to two decimal places.

a1. Calculate the expected rate of return for Stock J. Round your answer to two decimal place

b. Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.

b2. Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places

An external gear has a module of 4, 52 teeth in the gear, 28 teeth in the pinion, a pressure angle of 20°, pinion rotational speed of 1500 rpm, face width of 20 mm, and gear and pinion material having modulus of elasticity of 206 GPa and Poisson’s ratio of 0.3. The Hertzian contact pressure is 0.980 GPa. The lubricant used has an absolute viscosity of 0.3 Pa-s and pressure viscosity coefficient of 2.2 x 10^-8 m²/N. The root-mean-square surface roughness for both the pinion and gear is 0.1 µm. Determine the following:

1. Transmitted power
2. Minimum film thickness
3. The film parameter

1. Write a program that translates a letter grade into a number grade. Letter grades are A, B, C, D, and F, possibly followed by + or -. Their numeric values are 4, 3, 2, 1 and 0. There is no F+ or F-. A “+” increases the numeric value by 0.3, a “–“ decreases it by 0.3. However, an A+ has value 4.0.4 pts

Enter a Letter grade: B-

The numeric value is 2.7

1. Your code with comments
2. A screenshot of the execution

Test Cases:

            B-   (should print 2.7)

            A+ (should print 4.0)

            B+ (should print 3.3)

            C    (should print 2.0)

            F+ (should print 0.0)

            G    (should print “no such grade”)

Python, keep it simple