Consider the following scenario analysis:   

Assume a portfolio with weights of 0.60 in stocks and 0.40 in bonds.

a. What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.)

b. What are the expected rate of return and standard deviation of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. Would you prefer to invest in the portfolio, in stocks only, or in bonds only? Explain the benefit of diversification.

#1 Compute the (sample) variance and standard deviation of the data sample. (Round your answers to two decimal places.)

−1, 9, 9, 2, 11

#2 Compute the (sample) variance and standard deviation of the data sample. (Round your answers to two decimal places.)

−8, 3, 6, 8, 0, 6

#3 Compute the (sample) variance and standard deviation of the data sample. (Round your answers to two decimal places.)

2.8, −3.2, 2.5, −0.2, −0.2

Please answer all three questions. Thank you very much

A stock is expected to pay a dividend of $10 in one year. Its future annual dividends are expected to grow by 20% pa. The next dividend of $10 will be in one year, and the year after that the dividend will be $12 (=10*(1+0.2)^1), and a year later $14.4 (=10*(1+0.2)^2) and so on forever. Its required total return is 50% pa. The total required return and growth rate of dividends are given as effective annual rates. Calculate the payback period of buying the stock and holding onto it forever, assuming that the dividends are received as at each time, not smoothly over each year. Note that you will have to find the price of the stock first.

Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:

Required:

Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

The following times series shows the demand for a particular product over the past 10 months. Month Value

1 324

2 311

3 303

4 314

5 323

6 313

7 302

8 315

9 312

10 326

a. Use α = 0.2 to compute the exponential smoothing values for the time series. Compute MSE, MAPE and a forecast for month 11.

b. Calculate MSE and MAPE for three month moving average ?

c. Compare the three-month moving average forecast with the exponential smoothing forecast using α = 0.2. Which appears to provide the better forecast based on MSE?

Weak diprotic acid H₂A is titrated with 0.2000 M NaOH. The initial concentration of H₂A is 0.1000 M and the initial volume is 50.00 mL.      K_a1 = 1.0 x 10⁻⁵       K_a2 = 1.0 x 10⁻⁹

(a) (0.2 pt) Identify the predominate species at the first equivalence point, by chemical formula:

(b) (0.5 pts) Calculate the pH of the acid solution before any base is added.

(c) (0.5 pts) Calculate the pH at the first equivalence point.

(d) (0.2 pts) How many mL base, total, must be added to achieve the 2nd equivalence point?

(e) (0.5 pts) Calculate the pH at the second equivalence point.

The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $7,500 and has an expected life of 3 years. Annual net cash flows from each project begin 1 year after the initial investment is made and have the following probability distributions:

BPC has decided to evaluate the riskier project at a 11% rate and the less risky project at a 9% rate.

1. What is the expected value of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar.

   	Project A	Project B
   Net cash flow	$	$

   What is the coefficient of variation (CV)? (Hint: σ_B=$4,758 and CV_B=$0.67.) Do not round intermediate calculations. Round σ values to the nearest cent and CV values to two decimal places.

   	σ	CV
   Project A	$
   Project B	$

2. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answers to the nearest cent.

   Project A		$
   Project B		$

3. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision?

   This would tend to reinforce the decision to -Select-acceptrejectItem 9 Project B.

   If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk?

The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $7,750 and has an expected life of 3 years. Annual net cash flows from each project begin 1 year after the initial investment is made and have the following probability distributions:

BPC has decided to evaluate the riskier project at a 13% rate and the less risky project at a 10% rate.

1. What is the expected value of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar.

   	Project A	Project B
   Net cash flow	$	$

   What is the coefficient of variation (CV)? (Hint: σ_B=$4,758 and CV_B=$0.67.) Do not round intermediate calculations. Round σ values to the nearest cent and CV values to two decimal places.

   	σ	CV
   Project A	$
   Project B	$

2. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answers to the nearest cent.

   Project A		$
   Project B		$

3. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision?

   This would tend to reinforce the decision to -Select-acceptrejectItem 9 Project B.

   If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk?

   -Select-YesNo

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:

BPC has decided to evaluate the riskier project at 11% and the less-risky project at 8%.

1. What is each project's expected annual cash flow? Round your answers to two decimal places.

   Project A $

   Project B $

   Project B's standard deviation (σ_B) is $5,776 and its coefficient of variation (CV_B) is 0.74. What are the values of (σ_A) and (CV_A)? Round your answer to two decimal places.

   σ_A = $

   CV_A =

2. Based on the risk-adjusted NPVs, which project should BPC choose?

   Project A or Project B

3. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flows, but Project A's cash flows were positively correlated, how might this affect the decision?

   This would make Project B more appealing or This would make Project B less appealing.

   If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence your risk assessment? This would make Project B more appealing or This would make Project B less appealing.