A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.4%. The probability distributions of the risky funds are:   

The correlation between the fund returns is .0684.

Suppose now that your portfolio must yield an expected return of 13% and be efficient, that is, on the best feasible CAL.

What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Stocks ________%

Bonds ________%

The admissions officer at a small college compares the scores on the Scholastic Aptitude Test (SAT) for the school's in-state and out-of-state applicants. A random sample of 8 in-state applicants results in a SAT scoring mean of 1048 with a standard deviation of 44. A random sample of 1616 out-of-state applicants results in a SAT scoring mean of 1147 with a standard deviation of 43. Using this data, find the 98% confidence interval for the true mean difference between the scoring mean for in-state applicants and out-of-state applicants. Assume that the population variances are not equal and that the two populations are normally distributed.

Step 2 of 3 : Find the margin of error to be used in constructing the confidence interval. Round your answer to six decimal places.

A researcher would like to predict the dependent variable Y from the two independent variables X1 and X2 for a sample of N=16 subjects. Use multiple linear regression to calculate the coefficient of multiple determination and test the significance of the overall regression model. Use a significance level α=0.05.

X1             X2             Y

SSreg=
SSres=
R2=
F=
P-value =

What is your decision for the hypothesis test?

• Reject the null hypothesis, H0:β1=β2=0

• Fail to reject H0

What is your final conclusion?

• The evidence supports the claim that one or more of the regression coefficients is non-zero
• The evidence supports the claim that all of the regression coefficients are zero
• There is insufficient evidence to support the claim that at least one of the regression coefficients is non-zero
• There is insufficient evidence to support the claim that all of the regression coefficients are equal to zero

Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given:

Assume that Minneapolis’ sales by major market are:

The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $8,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $73,500 or increase sales in the Dental market by $63,000.

Required:

1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market??

2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?

3. In which of the markets would you recommend that the company focus its advertising campaign?

In which of the markets would you recommend that the company focus its advertising campaign?

1.1 A company with a cost of capital of 20% has identified projects with the following cash flows:

Required 1:
a. Calculate the payback period of each project.
b. Calculate the NPV and IRR of each project.
c. Which project would you accept on basis of NPV? On basis of IRR?
d. Compare and contrast NPV and IRR by listing advantages and disadvantages of each method. Based on the comparison, which of the two projects would you recommend?

2.2 A firm has total financing of N$20.06 million made up of N$14.46 million worth of equity and N$5.6 million worth of debt. The after tax cost of debt is N$12.8%. The next dividend is expected to be 10 cents, the current price is 50 cents ex-dividend and the growth rate is 8%. The firm is planning to raise N$5 million in new equity capital at 50 cents with floatation costs of 2 cents per share.
Required 2:
Calculate the firm’s WACC.

Part 1 (20%)

Implement a class with a main method. Using an enhanced for loop, display each element of this array:

String[] names = {"alice", "bob", "carla", "dennis", "earl", "felicia"};

Part 2 (30%)
In a new class, implement two methods that will each calculate and return the average of an array of numeric values passed into it. Constraints:

• your two methods must have the same name
• one method should accept an array of ints; the other should accept an array of doubles
• both methods must return the average to at least two decimal places of accuracy

Implement a new class demonstrating your methods in action. Call your methods at least twice each with arrays of different sizes each time.

Part 3 (50%)
The Valencia Ice Cream Shoppe pays its summer employees bonuses based on two factors: the number of weeks worked over the summer, and the number of positive customer reviews. The table below shows the bonuses based on these two factors.

Examples:

• Employee A worked 4 weeks and got 2 positive reviews; bonus: $325.
• Employee B worked 1 week and got 7 positive reviews; bonus: $180
• Employee C worked 8 weeks and got 0 positive reviews; bonus: $425
• Total bonuses paid: $930

Write an application that:

• stores the bonus values in a two-dimensional array
• allows the user to enter values for weeks worked and reviews received, and displays the amount of the bonus
• only accepts valid values for input (focus on valid ranges; don't worry about preventing wrong type input)
• allows the user to keep entering values until some sentinel value is entered, at which point the program ends
• upon ending, displays the total amount of bonuses paid out based upon the values entered

Please submit:

(1) all source code (.java files)
(2) screenshots showing all programs in action (image files)

1. You put $2,500 into an account earning interest at a rate of 8% per year. How much money will you have after 8 years, assuming simple interest and assuming no withdrawals? How much money will you have assuming compound interest and no withdrawals? (4 pts.)

2. Suppose you have an investment that pays 8% per year, compounded quarterly. What interest rate are you actually getting per year? (2 pts.)

3. What is the present value of $2,500 received in 7 years with monthly compounding at a 6% annual percentage rate (APR)? (2 pts.)

4. You are a financial manager for ABC Corp. trying to figure out which of three mutually exclusive projects to choose from, all of which are within the budget of the company. According to your projections, Project A will require an initial cash outlay of $2 million and promises to pay out $2 million after one year and $3 million after two years. Project B will require an initial cash outlay of $3 million and promises to pay out $3 million after one year and another $2.5 million after two years. Project C will require a cash outlay of $500,000 and will generate $1.2 million every year for the next five years. Which of the projects (A, B or C) should you choose to pursue, and why? (5 pts.)

Consider the following data for two variables,  and .

a. Develop an estimated regression equation for the data of the form y=b0+b1x . Comment on the adequacy of this equation for predicting . Enter negative value as negative number.

Using a .05 significance level, the p-value indicates a - Select your answer -weak relationship strong relationship no relationship ; note that  (to 1 decimal) of the variability in  has been explained by .

b. Develop an estimated regression equation for the data of the form y=b0+b1x+b2x^2. Comment on the adequacy of this equation for predicting y . Enter negative value as negative number. If your answer is zero, enter "0".

At the .05 level of significance, the relationship - Select your answer -is/ is not significant; note that   (to 1 decimal) of the variability in  has been explained by .

c.Using the appropriate regression model, predict the value of y when x=17 .

(to 2 decimals)

Use the Law of Cosines to solve the triangle. (Let a = 11.9 ft and c = 12.1 ft. Round your answer for b to two decimal places. Round your answers for A and C to the nearest minute.)

one angle is 50 degrees, 30'