Performance of a process to turn steel shafts is being evaluated. The shafts are identified as either pass or fail the inspection. A sample of 10 shafts will be inspected and the probability that any single shaft is identified as bad and fail is P=0.2. What is the probability that at least 2 shafts are considered bad?

Use the following information to answer the next two questions:

Stock                  Amount                       Beta

A                         25,000                         0.2

B                         20,000                         1.0

C                         30,000                         1.8

D                         25,000                         1.6

Risk-free rate is 3% and the market risk premium is 8%

1. What is the required return for this portfolio?

a die is tossed 60 times and if more than x sixes are obtained then there is evidence at 5% level that the die is biased towards six.

a)Find x,

b)Hence find the probabilty of type 1 error

c) Find p(type 2 error if p=0.2)

Consider the following hypotheses.

Ho p<0.16

H, p>0.16

Given that p=0.2 n = 140 and a=005, answer the following questions

a. What conclusion should be drawn?

b. Determine the p-value for this test.

a. Determine the critical value(s) of the test statistic

You estimated a regression model using annual returns of ExxonMobil (as a dependent variable) and of the market (as an independent variable). The R-squared of this regression is 0.2, and the total standard deviation of ExxonMobil's returns in the estimation window is 25%. In this case, the standard deviation of the unsystematic (or idiosyncratic) component of ExxonMobil's returns is:

In this assessment you are required to design a wireless campus network for Faber University. This assessment is group assessment and you may work in groups of upto 4 students. To design the wireless campus network for the university you are required to conduct a requirement analysis, propose a design of the network considering the university requirements, carry out a security analysis and propose a WLAN monitoring tool for monitoring the network in the future. The network needs to be designed with an industry tool for example packet tracer, GNS3 etc. The assessment will help in developing an understanding of communication in wireless networks, the security issues and the limitations and challenges. Faber University has recently been experiencing a decreasing level of enrolment. Faber was built in the early 1900s, and until ten years ago, was known as one of the finest centres for higher education on the eastern seaboard. In the last ten years, however, enrolment seemed to plateau and then slowly decline. Faber's Chancellor Jennings has hired a polling agency and formed an action committee composed of faculty, students, and administration to determine the causes of the university's decline in enrolment. The polling agency surveys the graduating seniors and reports that the emerging needs of students are not being met. The new generation of student that the university wants to attract is the technically elite who are known as early technology acceptors. Faber's rich history and, consequently, its old network architecture and lack of technical infrastructure, security and privacy, are its downfall in this new, technological environment. The university has different areas and buildings, the Administration department, the Athletic department, the Engineering department, the Biological Sciences department, the Liberal Arts department, the Student Union, Residential halls, Sports complex, Lake and Park. The campus is spread over large land and each building and open space is 200 meters apart. All the buildings have multiple floors and the current enrolment of students is 5000, there are 50 staff members and guests also visit the campus. As IT students your group has been assigned to design the wireless network. The following process needs to be followed to design a secure wireless campus network that meets the university requirements.

• Requirement Analysis

• Wireless Network Design

• Security Analysis

• Maintenance and Troubleshooting

1. Net Present Value (NPV) and Internal Rate of Return (IRR) (question)

The City and County of Denver is completing a $45 million renovation of City Park Golf Course. To complete the renovation, the course has been closed to the public for 2.5 years (planned re-opening is Spring 2020). The project updated the course, built a new clubhouse that can accommodate golf and community events, resulted in a “net gain of 500 trees”, and reduced flood risk “for thousands of homes”.[1] All of these updates are expected to provide either increased revenue or reduced costs. Assume the $45 million cost was paid upfront by Denver and the following are the estimated cash receipts and disbursements associated with the project.[1] If the cost of capital is 6%, does the project make sense based on NPV and IRR over a 30-year useful life? Does your finding change if the cost of capital is actually 4%?

[

Yatta Net International has manufacturing, distribution, retail, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. The company started its retail and consulting divisions within the last year, and it is unknown if these divisions will be profitable. The company knew that opening these new divisions would be risky, but its management believes the divisions have the potential to be extremely profitable under favorable market conditions. The company is currently using its WACC to evaluate new projects for all divisions.

If Yatta Net International does not risk-adjust its discount rate for specific projects properly, which of the following is likely to occur over time?

Check all that apply.

The firm will increase in value.

The firm could potentially reject projects that provide a higher rate of return than the company should require.

The firm’s overall risk level will increase.

Generally, a positive correlation exists between a project’s returns and the returns on the firm’s other assets. If this correlation is high/low , stand-alone risk will be a good proxy for within-firm risk.

Consider the case of another company. Chrome Printing is evaluating two mutually exclusive projects. They both require a $1 million investment today and have expected NPVs of $200,000. Management conducted a full risk analysis of these two projects, and the results are shown below.

Which of the following statements about these projects’ risk is correct? Check all that apply.

Project B has more market risk than Project A.

Project A has more stand-alone risk than Project B.

Project B has more corporate risk than Project A.

Project B has more stand-alone risk than Project A.

The real risk-free rate, r*, is 1.4%. Inflation is expected to average 1.1% a year for the next 4 years, after which time inflation is expected to average 3.6% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yield of 9.0%, which includes a liquidity premium of 0.7%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places.

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