You want to evaluate three mutual funds using the Jensen measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 18%. The average returns, standard deviations, and betas for the three funds are given below.

The fund with the highest Jensen measure is

Multiple Choice

• Fund A.

• Fund B.

• Fund C.

• Funds A and B (tied for highest).

• Funds A and C (tied for highest).

A firm is currently financed with $400 of debt and $600 of equity. The expected return on the debt is 5%. The market beta of the firmʹs equity is 1.2; the risk -free rate is 2%; and the equity premium is 6%. The firm pays taxes at the marginal rate of 40%.         The firm is considering increasing its debt to $600 and using the funds to repurchase some of its stock. This is likely to change the expected return on debt to 7%. Using same WACC above, what will the new market beta of the firmʹs equity be? Round your answer to the nearest tenth.

a.1.0

b. Not determinable

c. 1.2                                                   

d. 1.4

You are given a sample of several compounds to separate by paper chromatography. You draw a pencil line exactly 1.0 cm from the bottom of the paper, and place a spot of sample on it. You dry the sample, then develop it in a solvent.

When the chromatogram is taken out of the solvent, the paper is wet up to 9.0 cm from the bottom of the sheet. The compound you are interested in shows up as a spot 7.3 cm from the bottom of the paper.

Calculate the following:

How far did the compound move?

In the same time, how far did the solvent move?

What is the Rf factor for the compound?

1. Going forward, the stock market and Bananarama’s stock price have the following probability distribution:

Stock Market                                Bananarama Stock           

Probability                                      Rate of Return                                Rate of Return                        

0.2                                                  (4%)                                                   (6%)

0.6                                                   8%                                                     10%

0.2                                                  14%                                                   20%                  

(a) Calculate the expected rate of return for the stock market and for Bananarama’s stock.

                        Expected rate of return

b) Is Bananarama’s stock more volatile or less volatile that the stock market in genera

(c) Is the Beta for Bananarama’s stock lower or higher that 1.0?

(d) Is Bananarama’s cost of equity higher or lower that the stock market’s average cost of equity?

(e) Why?

Cloth can be waterproofed by coating it with a silicone layer. This is done by exposing the cloth to (CH3)2 SiCl2 vapor. The silicon compound reacts with OH groups on the cloth to form a waterproofing film (density = 1.0 g/cm3) of [(CH3)2SiO]n, where n is a large integer number. The coating is added layer by layer, with each layer of [(CH3)2SiO]n being 0.60 nm thick. Suppose you want to waterproof a piece of cloth that is 5.00 square meters, and you want 290 layers of waterproofing compound on the cloth. What mass of (CH3)2SiCl2 do you need?

Suppose you take out a 20-year mortgage for a house that costs $416,531. Assume the following:

• The annual interest rate on the mortgage is 4%.
• The bank requires a minimum down payment of 10% at the time of the loan.
• The annual property tax is 2.4% of the cost of the house.
• The annual homeowner's insurance is 1.0% of the cost of the house.
• The monthly PMI is $68
• Your other long-term debts require payments of $819 per month.

If you make the minimum down payment, what is the minimum gross monthly salary you must earn in order to satisfy the 28% rule and the 36% rule simultaneously?

Questions

Part A:
Based on the analysis of your local water, would you classify its hardness as soft, moderate, hard, or very hard? Explain your answer.

Part B
Approximately how much calcium would you ingest by drinking eight 8-oz glasses of your local water? Hint: 1 oz (fluid ounce) = 29.57 mL.

Part C
Assume an average minimum daily requirement for calcium is 1,150 mg. Calculate what percentage of your daily requirements could be met by drinking 1.0 L of your local water.

Sample statistics for a local bank and a competitor's bank

1. Are the samples dependent or independent?
2. State your Null/Alternative hypotheses
3. What is the test-statistic?
4. What is the p-value?
5. What are the critical values?
6. Does the test-statistic lie in the rejection region?
7. Interpret the Result?
8. Does the result change for a different value of alpha? Explain?

1.Write the java code to create a two dimensional String array of sizes 12 by 8;

Given the java array:

      double[] test = new double[3];

2.  Write the java code to put the numbers 1.0, 2.0, and 3.0 in to the array so that the 1.0 goes in the first cell, the 2.0 goes in the second cell and the 3.0 goes in the third cell.

3. Can you have different types of data is a three dimensional array?

4. Given the java code:   int[][] values = new int[6][7]; How many integers can you put in this array?

5. Can you write over a file of data?

6. Write a java program that create a 2 dimensional array of type double of size 15 by 15. Fill the array with random numbers using a random number generator. Print the array contents.

7. Write a java program that creates a file called data.txt that uses the PrintWriter class. Write the even numbers 2 to 100 into the file. Close the file. Attach both files.

8. Create a java program that asks the user for the number of parts to be entered. Create an array of type String that is the size of the number the user provided. Ask the user for the part names, and place them in the array. Ask the user for the part name to find and search the array for the name. Tell the user if you found it or not.

9. Create an array with 100 random integers. Sort the array from low to high. Ask the user for a number to search. Search the array and let the user know if you found the number or not.

There are three registers at the local grocery store. I suspect the mean wait-times for the registers are different. The sample data is depicted below. It gives the wait-times in minutes.  

The Test: Complete the steps in testing the claim that there is a difference in mean wait-times between the registers.

(a) What is the null hypothesis for this test?

H₀:  μ₁ ≠ μ₂ ≠ μ₃.

H₀:  μ₁ = μ₂ = μ₃.     

H₀: At least one of the population means is different from the others.

H₀:  μ₂ > μ₃ > μ₁.

(b) What is the alternate hypothesis for this test?

H₁: At least one of the population means is different from the others.

H₁:  μ₁ ≠ μ₂ ≠ μ₃.     

H₁:  μ₂ > μ₃ > μ₁.

H₁:  μ₁ = μ₂ = μ₃.

(c) Use software to get the P-value of the test statistic ( F ). Round to 4 decimal places unless your software automatically rounds to 3 decimal places.
P-value =  

(d) What is the conclusion regarding the null hypothesis at the 0.10 significance level?

reject H₀

fail to reject H₀     

(e) Choose the appropriate concluding statement.

We have proven that all of the mean wait-times are the same.

There is sufficient evidence to conclude that the mean wait-times are different.     

There is not enough evidence to conclude that the mean wait-times are different.

(f) Does your conclusion change at the 0.05 significance level?

Yes

No