A five-year bond with a yield of 7% (continuously
compounded) pays a 5.5% coupon at the end of each
year.
In: Finance
You're crafting a portfolio of two stocks. You plan to buy $3,000 worth of the first stock and $1,000 worth of the second stock. The standard deviation of the first stock is 20% and the standard deviation of the second stock is 40%. They have a correlation coefficient of 0.3. How volatile will the portfolio be? Answer in percent rounded to two decimal places. (e.g., 4.53% = 4.53)
In: Finance
A stock portfolio has an expected return of 12% and a standard deviation of 20%. A bond portfolio has an expected return of 6% and a standard deviation of 9%. The two portfolios have a correlation coefficient of 0.3. T-Bills have an expected return of 2%. Your coefficient of risk aversion is 7.
In: Finance
Consider the following time series data.
| Week | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| Value | 18 | 12 | 16 | 10 | 17 | 15 |
(a) Construct a time series plot.
What type of pattern exists in the data? The data appear to follow a horizontal pattern.
(b) Develop the three-week moving average forecasts for this time series. (Round your answers to two decimal places.)
| Week | Time Series Value |
Forecast |
|---|---|---|
| 1 | 18 | |
| 2 | 12 | |
| 3 | 16 | |
| 4 | 10 | 15.33 |
| 5 | 17 | 12.67 |
| 6 | 15 | 14.33 |
Compute MSE. (Round your answer to two decimal places.)
MSE = 15.89
What is the forecast for week 7? 14.00
(c) Use α = 0.2 to compute the exponential smoothing forecasts for the time series.
| Week | Time Series Value |
Forecast |
|---|---|---|
| 1 | 18 | |
| 2 | 12 | 18 |
| 3 | 16 | 16.80 |
| 4 | 10 | 16.64 |
| 5 | 17 | |
| 6 | 15 |
Compute MSE. (Round your answer to two decimal places.)
MSE = 16.80
What is the forecast for week 7? (Round your answer to two decimal places.) 15.52
(d) Compare the three-week moving average approach with the exponential smoothing approach using α = 0.2. Which appears to provide more accurate forecasts based on MSE? Explain.
The three-week moving average provides a better forecast since it has a smaller MSE than the smoothing approach.
(e) Use a smoothing constant of α = 0.4 to compute the exponential smoothing forecasts.
| Week | Time Series Value |
Forecast |
|---|---|---|
| 1 | 18 | |
| 2 | 12 | 18 |
| 3 | 16 | 15.60 |
| 4 | 10 | 15.76 |
| 5 | 17 | |
| 6 | 15 |
Does a smoothing constant of 0.2 or 0.4 appear to provide more accurate forecasts based on MSE? Explain. .The exponential smoothing using α = 0.4 provides a better forecast since it has a smaller MSE than the exponential smoothing using α = 0.2.
Missing 5 and 6 from both charts
In: Statistics and Probability
Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends
Pranks, Inc.
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.
| Number of common shares authorized | 800,000 |
| Number of common shares issued | 650,000 |
| Par value of common shares | $20 |
| Par value of cumulative preferred shares | $30 |
| Paid-in capital in excess of par-common stock | $7,000,000 |
| Paid-in capital in excess of par-preferred stock | $0 |
| Total retained earnings before the stock dividend is declared | $33,500,000 |
| No treasury share have been reissued. |
| Preferred Dividends | Common Dividends | ||||
| Year | Total Cash Dividends |
Total | Per Share | Total | Per Share |
| Year 1 | 30,000 | 30,000 | 0.20 | 0 | 0.00 |
| Year 2 | 54,000 | 54,000 | 0.36 | 0 | 0.00 |
| Year 3 | 96,000 | 51,000 | 0.34 | 45,000 | 0.09 |
| Year 4 | 120,000 | 45,000 | 0.3 | 75,000 | 0.15 |
| Year 5 | 135,000 | 45,000 | 0.3 | 90,000 | 0.18 |
| Year 6 | 195,000 | 45,000 | 0.3 | 150,000 | 0.3 |
Stock Dividend
The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1, and is $32 on the actual distribution date of the stock, December 31.
Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.
| Total paid-in capital before the stock dividend | $ |
| Total retained earnings before the stock dividend | |
| Total stockholders’ equity before the stock dividend | $ |
| Total paid-in capital after the stock dividend | $ |
| Total retained earnings after the stock dividend | |
| Total stockholders’ equity after the stock dividend | $ |
In: Accounting
Catrina Corporation took out a new insurance policy on their recently built offices. The policy cost $240,000 and covered 24 months, from Oct 1, 20X1 to the end of Sep 20X3. When Catrina prepares its balance sheet at year-end 20X1, what amount will be shown as prepaid insurance?
In: Accounting
1. why would any company choose to locate manufacturing facilities in the U.S., when U.S. companies are fleeing the country?
Take a foreign company that has built a plant in the U.S. What incentives motivated the company of your choice? What were some of the long-term and short-term benefits of that decision?
In: Finance
In: Math
3. Consider the market for Honda car, a brand of car. For each of the following separate scenarios, determine where demand/supply curve shifts.
In: Economics
Write a program that performs the following two tasks in java
Use linked lists to implement the Queue and Stack ADTs. DO NOT USE BUILT IN JAVA CLASSES
In: Computer Science