Fadwa is the general manager at the 125-room select-service. Fadwa has just taken a call from Lawrence's hotel. Because of an internal oversight, Lawrence's hotel is overbooked by 70 group rooms next Saturday. Lawrence would like to purchase that number of rooms from Fadwa at their previously agreed upon walk rate of $75 per night. Fadwa's normal ADR is $129.00 and her cost of cleaning a room is $17. Currently, Fadwa had 55 occupied rooms (arrivals and stayovers) on the books for that day. She forecast that she could sell, at her normal ADR, another 30 rooms by Saturday. Fadwa typically generates $8 in ancillary revenue from each of her occupied rooms. Before replying to Lawrence's request, she summarized her forecasted rooms sale-related information in a chart so she could better understand the impact of accepting or rejecting Lawrence's walked guests. FILL IN THE CHART AND ANSWER THESE QUESTIONS BELOW

a. What would be Fadwa’s ADR if she accepted all of Lawrence’s walked rooms?

Answer:

b. What would be Fadwa’s RevPOR with the walked rooms?

Answer:

c. What would be Fadwa’s RevPOR without the walked rooms?

Answer:

d. What would be the net total revenue (RevPOR – Rooms dept. cost POR) difference in her hotel's revenue if Fadwa agree to take the rooms?

Answer:

e. What would be the percentage difference in her hotel’s net total revenues if Fadwa agree to take the rooms?

Answer:

f. If you were Fadwa, would you accept the walked rooms from Lawrence’s hotel? Why or why not.

Answer:

Below you are given the first five values of a quarterly time series of sales.

21. Refer to data above. When a naïve method is used, what is the forecast on the sales in Quarter 2 of Year 2.

a. 20 b. 44 c. 27 d. 30

22. Refer to data in Q21. When a three-quarter moving average is used, what is the forecast on the sales in Quarter 2 of Year 2.

a. 20.5 b. 44.3 c. 26.7 d. 30.2

23. Refer to data in Q21. When a three-quarter weighted moving average (W1= 0.5, W2 = 0.3, and W3 = 0.2) is used, what is the forecast on the sales in Quarter 2 of Year 2. (Hint: Ft+1 = W1Dt + W2D ( t – 1) + W3D ( t – 2) )

a. 24.4 b. 30.2 c. 22.8 d. 31.2

24. Refer to data in Q21. When an exponential smoothing model is used with a smoothing parameter alpha of 0.30 and a Q1-Year 2 forecast is 20, what is the forecast on the sales in Quarter 2 of Year 2. (Hint: Ft+1 = aYt + (1 – a)Ft)

a. 27.2 b. 29.2 c. 31.2 d. 33.2

25. Refer to data in Q21. The equation for the trend line of quarterly sales is Ft = 24.4 + 1.2t. What is the forecast on the sales in Quarter 2 of Year 2. (Hint: t=1 for Q1-Year 1, 2 for Q2-year 1, and so on )

a. 31.2 b. 30.4 c. 32.2 d. 31.6

Please show how each answer was obtained. Thank you!

You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a​ $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts​ (a) through​ (c) below.

Probability Economic condition Stock_X Stock_Y

0.1 Recession -150 -170

0.2 Slow_growth    20 50

0.4 Moderate_growth 100 130

0.3 Fast_growth 160 210

a. Compute the expected return for stock X and for stock Y. The expected return for stock X is ? ​(Type an integer or a​ decimal.)

b. Compute the standard deviation for stock X and for stock Y.

c. Which of the following best describes the decision that should be​ made? Choose the correct answer below.

A.Based on the expected ​value, stock Y should be chosen. ​However, stock Y has a larger standard ​deviation, resulting  in a higher ​risk, which should be taken into consideration.

B.Since the expected values are approximately the​ same, either stock can be invested in.​ However, stock X has a larger standard​ deviation, which results in a higher risk. Due to the higher risk of stock X​, stock Y should be invested in.

C.Since the expected values are approximately the​ same, either stock can be invested in.​ However, stock Y has a larger standard​ deviation, which results in a higher risk. Due to the higher risk of stock Y​, stock X should be invested in.

D.Based on the expected ​value, stock X should be chosen. ​However, stock X has a larger standard ​deviation, resulting  in a higher ​risk, which should be taken into consideration.

Hot & Cold and Caldo Freddo are two European manufacturers of home appliances that have merged. Hot & Cold has plants in France, Germany, and Finland, where Caldo Freddo has plants in the United Kingdom and Italy. The European market is divided into four regions: North, East, West, and South. Plant capacities (millions of units per year), annual fixed costs (millions of euros per year), regional demand (millions of units), and variable production and shipping costs (euros per unit) are listed in the following table.

Each appliance sells for an average price of 300 euros. All plants are currently treated as profit centers, and the company pays taxes separately for each plant. Tax rates in the various countries are as follows: France, 0.25; Germany, 0.25; Finland, 0.3; UK 0.2; Italy, 0.35.

1. Before the merger, what is the optimal network for each of the two firms if their goal is to minimize costs? What is the optimal network if the goal is to maximize after-tax profits?

This is the HW question I cannot get the correct answer for. I've completed the first step but I cannot seem to get the correct numbers for EFN for 20, 25 and 30%!?!? See below for given financial statements and my table with the pro forma of 20, 25 and 30% numbers

Consider the following payoff table in which D1 through D3 represent decision alternatives, S1 through S4 represent states of nature, and the values in the cells represent return on investments in millions.

    S1 S2 S3 S4

D1 30 20 -50 100

D2 60 150 40 -80

D3 40 10 80 80

1. What are the decision alternatives, and what are the chance events for this problem?

2. Construct a decision tree

3. What is the preferred alternative when the decision maker is optimistic?

4. What is the preferred alternative when the decision maker is conservative?

5. What is the preferred alternative when using the minimax regret criterion?

6. Suppose that each state of nature is equally likely to occur, what is the expected value of the

   payoff?

7. Assume the probabilities remain the same under state of natures in the preceding question (part

   f), what is the expected value of perfect information. (show your work to receive full credit)

8. Suppose P(s1) = 0.4, P(s2) = 0.3, and P(s3) = 0.2, what is the best decision using the expected

   value approach?

9. Perform sensitivity analysis on the best decision alternative payoffs from the preceding question (part h). Assuming the probabilities remain the same (as in part h), find the range of payoffs under state of nature s1 that will keep the solution found in the preceding question (part h) optimal. (show your work to receive full credit)

Note: You need to be able to interpret the results for parts c-e of this problem.
For part f, you need to know how to construct a risk profile for the optimal decision For parts g and i, you need to show your work to receive full credit.

TOPIC: PORTFOLIO ANALYSIS

show all workings step by step

Question 1

M & M (Pvt) Ltd, a small entity in the mining industry is involved in operations that result in the company having stocks of cash resource. The company has thus decided to create a portfolio of investments comprising of agriculture notes, a debt instrument, and ordinary shares of a company that is into telecommunications. The intended investment in Agriculture Notes is sixty percent and the remainder in ordinary shares. Forecasts have shown the following possibilities in as far as scenarios and their chances of occurring as well as annual returns are concerned.

Required

1. Determine the annual expected return for each scenario for this portfolio.         
2. If the target of the company is to get at least $16 800/ annum from funds invested, does this portfolio presents such prospect overally? Support your answer with workings         
3. Compute the risk of each investment in the portfolio if it were to stand alone and which one has greater risk. Use the standard deviation.
4. Calculate the covariance of returns for the above investment and interpret.
5. Determine the correlation coefficient of investment returns in the portfolio and comment on their potential to reduce diversifiable risk.
6. Determine the portfolio risk as measured by standard deviation and comment on whether the portfolio has been constructed using correct investments.         
7. If the objective of the portfolio manager is not to have expected returns fluctuating by more than $1 500/annum. Can it be concluded that this portfolio is ideal for the company and why?

Question 1
M & M (Pvt) Ltd, a small entity in the mining industry is involved in operations that result
in the company having stocks of cash resource. The company has thus decided to
create a portfolio of investments comprising of agriculture notes, a debt instrument, and
ordinary shares of a company that is into telecommunications. The intended investment
in Agriculture Notes is sixty percent and the remainder in ordinary shares. Forecasts
have shown the following possibilities in as far as scenarios and their chances of
occurring as well as annual returns are concerned.
Scenarios Probability Return on Agric
Notes ($)
Return on Ordinary
Shares ($)
Booming
Economy
0.3 25 000 10 000
Normal
Economy
04 20 000 11 000
Depressed
Economy
0.2 18 000 22 000
Recession 0.1 10 000 28 000
Required
a) Determine the annual expected return for each scenario for this portfolio. (8
marks)
b) If the target of the company is to get at least $16 800/ annum from funds
invested, does this portfolio presents such prospect overally? Support your
answer with workings
c) Compute the risk of each investment in the portfolio if it were to stand alone and
which one has greater risk. Use the standard deviation.
d) Calculate the covariance of returns for the above investment and interpret. (7
marks)
e) Determine the correlation coefficient of investment returns in the portfolio and
comment on their potential to reduce diversifiable risk.
f) Determine the portfolio risk as measured by standard deviation and comment on
whether the portfolio has been constructed using correct investments. (5
marks)
g) If the objective of the portfolio manager is not to have expected returns
fluctuating by more than $1 500/annum. Can it be concluded that this portfolio is
ideal for the company and why?

****URGENT******

1A)  An event has four possible outcomes, A, B, C, and D. All of the outcomes are disjoint.

Given that P(B^c) = 0.2, P(A) = 0.1, and P(C) = 0.3, what is P(D)?

1B) A study was conducted on a potential association between drinking coffee and being diagnosed with clinical depression. All 18,832 subjects were female. The women were free of depression at the start of the study in 1996. Information was collected on coffee consumption and the incidence of clinical depression during the ten-year study period.

Are the following events independent?

Event LC: The event of drinking less than or equal to 1 cup of coffee per week

(Little Coffee = LC)

Event D: The event of a diagnosis of clinical depression

(Depression = D)

Round your calculations to four decimal places (or fewer) at each step.

There are multiple ways to test for independence. All involve the comparison of observed and expected probabilities based on probability theory.

In this context:

If the two probabilities are similar (identical to two decimal places), this is evidence of independence.

If the two probabilities are not similar (not identical to two decimal places), this is evidence of a lack of independence.

C) What do your results in (b) tell us, about the ways in which drinking very little coffee (0-1 cups per week) influences, or does not influence, the probability of depression for women in the study population?

Selected ratios for 2018 for two companies in the same industry are presented below:

REQUIRED: Answer each of the following questions providing the ratio(s) to support your answer, explain.

1) Comment on how successful each company appears to managing its accounts receivable. Terms are net 30 for both companies
2) How well does each company appear to be managing its inventory?
3) Which company is more solvent, explain using ratios?  
4) Which company is more profitable, explain using ratios?
5) The gross profit margin for Draco is higher than Potter's and the industry average. Provide two reasons why this would be the case?
6) Which company would investors believe would have greater prospects for seeking growth?
7) Why is Basic Earnings per Share not comparable between companies?