Greta, an elderly investor, has a degree of risk aversion of A = 3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 5% per year, with a SD of 20%. The hedge fund risk premium is estimated at 10% with a SD of 35%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual returns on the S&P 500 and the hedge fund in the same year is zero, but Greta is not fully convinced by this claim.
Calculate Greta’s capital allocation using an annual correlation of 0.3? (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
S&P:
Hedge:
Risk-free asset:
In: Finance
A city in a particular county has a population of 459,649; the population of the county is 9,519,338. Conduct a goodness of fit test at the 5% level to determine if the racial demographics of the city fit that of the county. Round expected frequency to two decimal places.
| Race | Percent, county | Expected #, city | Actual #, city |
|---|---|---|---|
| American Indian and Alaska Native | 0.8 | 3677.19 | 3,865 |
| Asian | 11.9 | 54698.23 | 55,595 |
| Black or African American | 9.8 | 45045.60 | 68,641 |
| Native Hawaiian and other Pacific Islander | 0.3 | 1378.95 | 5,615 |
| White, including Hispanic/Latino | 48.7 | 223849.06 | 206,526 |
| Other | 23.5 | 108017.52 | 95,031 |
| Two or more races | 5.0 | 22982.45 | 24,376 |
(1) What are the degrees of freedom = 6
(2) What is the test statistic = 28383
(3) Distribution for this test = X26
(3) What is the p-value = 0.0000
(4) NEED HELP WITH #4
Sketch a picture of this situation. Label and scale the horizontal axis, and shade the region(s) corresponding to the p-value. (Upload your file below.)
(5) Alpha a= 0.05
In: Statistics and Probability
A conventional activated-sludge plant treats 10.0 MGD of municipal wastewater with a BOD concentration of 240 mg/l and suspended solids of 200 mg/l. The sludge flow pattern is shown in Figure 11-1 of the textbook with a gravity belt thickener to concentrate the excess activated sludge. Primary and thickened activated sludge are pumped separately to the anaerobic digester. The primary clarifier removes 50% of the suspended solids and 35% of the BOD. The primary sludge solids content is 4.0%. The operating F/M ratio for the activated-sludge process is 0.3 lb BOD per day per pound of MLSS. The solids content of the waste sludge removed from the secondary clarifier is 16,000 mg/l; the gravity belt thickening captures 95% of the solids in the sludge and increases the solids content of the thickened sludge to 7%. Calculate: a) Flow rate of primary sludge, in gals/day b) Flow rate of thickened secondary sludge, gals/day. c) Flow rate and solids concentration of the blended sludge
In: Physics
Greta, an elderly investor, has a degree of risk aversion of A = 3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 5% per year, with a SD of 20%. The hedge fund risk premium is estimated at 10% with a SD of 35%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual returns on the S&P 500 and the hedge fund in the same year is zero, but Greta is not fully convinced by this claim.
Calculate Greta’s capital allocation using an annual correlation of 0.3? (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
S&P:
Hedge:
Risk-free asset:
In: Finance
(3) A family owns a restaurant that has two locations: one in the town of Rabbit Hash, Kentucky and the other in the town of Deer Lick, Kentucky. The owners of the restaurants want to know if there is a difference in the tenure of their employees (how long an employee works there from hiring to quitting / firing) between the two locations. They collect the following data on the tenure of six recent employees. The data is the number of years the employee worked at that location.
|
Rabbit Hash, KY location |
Deer Lick, KY location |
|
9.1 |
3.8 |
|
3.7 |
12.1 |
|
0.1 |
5.2 |
|
1.1 |
5.1 |
|
0.3 |
4.8 |
|
0.5 |
5.0 |
In: Statistics and Probability
A conventional activated-sludge plant treats 10.0 MGD of municipal wastewater with a BOD concentration of 240 mg/l and suspended solids of 200 mg/l. The sludge flow pattern is shown in Figure 11-1 of the textbook with a gravity belt thickener to concentrate the excess activated sludge. Primary and thickened activated sludge are pumped separately to the anaerobic digester. The primary clarifier removes 50% of the suspended solids and 35% of the BOD. The primary sludge solids content is 4.0%. The operating F/M ratio for the activated-sludge process is 0.3 lb BOD per day per pound of MLSS. The solids content of the waste sludge removed from the secondary clarifier is 16,000 mg/l; the gravity belt thickening captures 95% of the solids in the sludge and increases the solids content of the thickened sludge to 7%. Calculate: a) Flow rate of primary sludge, in gals/day b) Flow rate of thickened secondary sludge, gals/day. c) Flow rate and solids concentration of the blended sludge
In: Physics
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows: Junior Pro Striker Production budget 5,800 units 18,400 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior 0.25 hour per unit 0.5 hour per unit Pro Striker 0.3 hour per unit 0.6 hour per unit The direct labor rate for each department is as follows: Forming Department $15 per hour Assembly Department $8 per hour Prepare the direct labor cost budget for July. Ace Racket Company Direct Labor Cost Budget For the Month Ending July 31 Forming Department Assembly Department Hours required for production: Junior Pro Striker Total Hourly rate x$ x$ Total direct labor cost $ $
In: Accounting
Mr. Sam Golff desires to invest a portion of his assets in
rental property. He has narrowed his choices down to two apartment
complexes, Palmer Heights and Crenshaw Village. After conferring
with the present owners, Mr. Golff has developed the following
estimates of the cash flows for these properties.
|
Palmer Heights |
||||||
| Yearly Aftertax Cash Inflow (in thousands) |
Probability | |||||
| $ | 120 | 0.2 | ||||
| 125 | 0.2 | |||||
| 140 | 0.2 | |||||
| 155 | 0.2 | |||||
| 160 | 0.2 | |||||
|
Crenshaw Village |
||||||
| Yearly Aftertax Cash Inflow (in thousands) |
Probability | |||||
| $ | 125 | 0.2 | ||||
| 130 | 0.3 | |||||
| 140 | 0.4 | |||||
| 150 | 0.1 | |||||
a. Find the expected cash flow from each apartment
complex. (Enter your answers in thousands (e.g, $10,000
should be enter as "10").)
b. What is the coefficient of variation for each
apartment complex? (Do not round intermediate calculations.
Round your answers to 3 decimal places.)
c. Which apartment complex has more risk?
Palmer Heights
Crenshaw Village
In: Finance
Greta has risk aversion of A = 3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of one-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 8% per year, with a standard deviation of 22%. The hedge fund risk premium is estimated at 10% with a standard deviation of 37%. The returns on both of these portfolios in any particular year are uncorrelated with its own returns in other years. They are also uncorrelated with the returns of the other portfolio in other years. The hedge fund claims the correlation coefficient between the annual return on the S&P 500 and the hedge fund return in the same year is zero, but Greta is not fully convinced by this claim. Calculate Greta’s capital allocation using an annual correlation of 0.3. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
In: Finance
(i) Nizwa city collected taxes amounting to OMR 10.00 million.
These taxes are unrestricted.
(ii) Nizwa city received a state grant of OMR 0.5 Million for the
purchase of garbage carrier trucks. This state grant was restricted
for this specific purpose. The city spent 0.3 million for purchase
of trucks.
(iii)Nizwa city issued OMR 20.00 Million municipal bonds for a
construction of water drainage system. In that OMR 15.00 Million
was actually spent for that project.
(iv) Nizwa city incurred OMR 8.00 Million in general operating
expenditure of which it actually paid OMR 7.2 Million.
(v) The municipality transferred OMR 1.5 million from the general
fund to the debt service fund to make the first payments of both
principal and interest that are due in the following year.
You are required to:
(a) Give the accounting entries for each of the above
transactions
(b) Prepare the Statement of Fund Revenues, Expenditures and Other
Changes in Fund Balances and; (c) The Fund Balance Sheet.
In: Accounting