Your portfolio contains $4,815 worth of PG and $4,397 worth of HD stocks. What is the beta of your portfolio, if PG's beta is 0.8 and HD's beta is 1.5%? Assume that the CAPM holds.
Provide your answer rounded to two decimals.
In: Finance
Suppose that a random sample of size 64 is to be selected from a population with mean 40 and standard deviation 5.
a) What is the approximate probability that x will differ from μ by more than 0.8? (Round your answer to four decimal places.)
In: Statistics and Probability
The standard deviation of quarterly changes in the price of a commodity is $0.65, the standard deviation of quarterly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.8. What is the minimum variance hedge ratio for a 3-month contract
In: Finance
Test the hypothesis that the average number of T.Vs in U.S. households is less than 3. Your sample consists of 100 households with a mean of 2.84 T.Vs. You know the population standard deviation to be 0.8. Your desire a level of significance of 0.05
In: Math
We wish to create a 95% confidence interval for the proportion. A sample of 50 gives a proportion of 0.2. Find the upper value for the confidence interval. Round to 3 decimal places.
In: Statistics and Probability
In: Physics
Two assets' correlation is -0.2. The first has expected return of 9% and standard deviation of 16%, the second has expected return of 13% and standard deviation of 20%.
Calculate the minimum amount of risk (standard deviation) you'll need to take if investing in these two assets. (Provide your answer in percent rounded to two decimals omitting the % sign)
In: Finance
1) A force of 2 pounds is required to hold a spring stretched 0.2 feet beyond its natural length. How much work (in foot-pounds) is done in stretching the spring from its natural length to 0.9 feet beyond its natural length?
2) Work of 3 Joules is done in stretching a spring from its natural length to 19 cm beyond its natural length. What is the force (in Newtons) that holds the spring stretched at the same distance (19 cm)?
3) How much work is done lifting a 40-pound object from the
ground to the top of a 30-foot building if the cable used weighs
0.5 pounds per foot?
foot-pounds.
In: Math
Time intervals measured with a stopwatch typically have an uncertainty of about 0.2 seconds due to human reaction time. How does this compare to the uncertainties of individual measurements above? Can human reaction time fully account for these uncertainties? If not, what other factors may contribute to the uncertainty of individual measurements (provide at least one)?
Also, What are the fundamental differences in the uncertainty of individual measurements vs uncertainty of mean of measurements
In: Physics
Suppose that the price elasticity for hip replacement surgeries is 0.2. Further suppose that hip replacement surgeries are originally not covered by health insurance and that at a price of $50,000 each, 10,000 such surgeries are demanded each year.
Instructions: Enter your answers as whole numbers.
a. Suppose that health insurance begins to cover hip replacement surgeries and that everyone interested in getting a hip replacement has health insurance. If insurance covers 70 percent of the cost of the surgery, by what percentage would you expect the quantity demanded of hip replacements to increase? (Hint: Do not bother to calculate the percentage changes using the midpoint formula. If insurance covers 70 percent of the bill, just assume that the price paid by consumers falls 70 percent.)
What if insurance covered 95 percent of the price?
Instructions: Round your answer to 1 decimal place.
b. Suppose that with insurance companies covering 95 percent of the price, the increase in demand leads to a jump in the price per hip surgery from $50,000 to $100,000. How much will each insured patient now pay for a hip replacement surgery?
Compared to the original situation, where hip replacements cost $50,000 each but people had no insurance to help subsidize the cost, will the quantity demanded increase or decrease?
(Click to select) Increase Decrease
By how much?
In: Economics