1. Kiwi traders have invested in two securities traded at the Nairobi Stock Exchange (NSE). The security A Possible returns are estimated as 4%, 4.5%, 6%, 8%, 11%, 13%, 15%, 16%, 16.5% and 18%, with probabilities: 0.09, 0.07, 0.1, 0.2, 0.04, 0.03, 0.01, 0.02, 0.21 and 0. 23 respectively. Those of Security Y are estimated as 16%, 14%, 12%, 10%, 8%, 6%, 4%, 4%, 3%, and 2%, with probabilities: 0.08, 0.1, 0.07, 0.25, 0.09, 0.12, 0.03, 0.11, 0.1 and 0.05 respectively.

Required

If Kiwi trader’s portfolio formation is Ksh 300,000, committing equal amounts in each asset, determine the Portfolio risk

Brown Inc. acquired 75% of the common stock of Allen Co. for $1,800,000. The fair value of Allen's net assets was $2,240,000, and the book value was $1,800,000. The non-controlling interest shares of Allen Corp. are not actively traded and there is no control premium.

1. What is the total amount of goodwill recognized at the date of acquisition?

A. $120,000.
B. $150,000.
C. $0.
D. $160,000.

2. What amount of goodwill should be attributed to Brown Inc. at the date of acquisition?

A. $120,000.
B. $150,000.
C. $0.
D. $170,000.

​​​​​​​

3.What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

A. $0.
B. $30,000.
C. $40,000.
D. $120,000.

Follow a public traded stock and analyze the changes in stock price. Write a presentation and an executive memo of your findings. Choose one of the following companies:

1. Amazon
2. Alphabet
3. Microsoft
4. Facebook
5. Apple

In your presentation you should:

1. Describe graphically the trend of the stock prices during the last 2 months and, in more detail, during the last 3 weeks.
2. Explain the observed trends
3. Compare the trends with relevant indexes
4. Relate these trends to relevant contextual information (example: Covid crisis).
5. Is the development of the prices positive? Do you consider that an investment done two months ago is good? Explain.
6. Regarding this context, briefly forecast the changes in prices for the next month.

The following were selected from among the transactions completed by Babcock Company during November of the current year:

Journalize the entries to record the transactions of Babcock Company for November using the periodic inventory system. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

1) One out of every 92 tax returns that a tax auditor examines requires an audit. If 50 returns are selected at random, what is the probability that less than 3 will need an audit? 0.0151 0.9978 0.0109 0.9828

2) Sixty-seven percent of adults have looked at their credit score in the past six months. If you select 31 customers, what is the probability that at least 20 of them have looked at their score in the past six months? 0.142 0.550 0.692 0.450

3) Ten rugby balls are randomly selected from the production line to see if their shape is correct. Over time, the company has found that 89.4% of all their rugby balls have the correct shape. If exactly 6 of the 10 have the right shape, should the company stop the production line? No, as the probability of six having the correct shape is not unusual Yes, as the probability of six having the correct shape is not unusual No, as the probability of six having the correct shape is unusual Yes, as the probability of six having the correct shape is unusual

The Farr-Kroger Classic is a women’s professional golf tournament played each year in Ohio. Listed below are the total purse winnings (the amount of money that is distributed to the top golfers) and the prize for the winner for the 15 years from 1991 through 2005. The operators of this golf tournament believe that there is a relationship between the purse winnings and the prize and the prize is related to the purse winnings. In addition to the data provided, some of the possible linear regression relationships are provided.   These might be of help in your analysis.

Using linear regression relationships, answer the questions a) through c) below and on the following page.

a) Develop a projection for the amount of the prize for the winner for the year 2008 if the purse winnings for that year are projected to be $996,430. As part of your answer, include the independent and dependent variables and the accompanying linear regression relationship.

b) Now let’s suppose that we believe the prize for the winner is a function of time (dependent on time). Given this belief, develop a projection for the amount of the prize for the winner for the year 2008 and discuss your results compared to what you found in part a)

c) Would you recommend using the forecasts you found in parts a) and b) based on the strengths of the relationship? Why?

The following listing has the number of U.S. Representatives for each of the 11 states in the Southeast. All questions pertain to the number of representatives for each state.

Alabama, 7; Florida, 27; Georgia 14; Kentucky, 6; Louisiana, 6; Mississippi, 4;

North Carolina, 13; South Carolina, 7; Tennessee, 9; Virginia, 11; West Virginia, 3

What is the z-score for the number of representatives in North Carolina?

Question

The following listing has the number of U.S. Representatives for each of the 11 states in the Southeast. All questions pertain to the number of representatives for each state.

Alabama, 7; Florida, 27; Georgia 14; Kentucky, 6; Louisiana, 6; Mississippi, 4;

North Carolina, 13; South Carolina, 7; Tennessee, 9; Virginia, 11; West Virginia, 3

What is the percentile for the number of representatives in North Carolisa?

Use the following information to answer questions 9-15.

The length of time spent in the examination room is recorded for each patient seen by each physician at an orthopedic clinic.

Does the data provide a significance difference in mean times?

1. With α=.05 the null hypothesis should be:

   		Rejected
   		Not Rejected
   		Impossible to determine
   		none of the above answers are correct

10 points   

QUESTION 15

1. Find a 95% confidence interval for μ₂-μ₃.

   		(2.76,11.08)
   		(1.91,11.93)
   		(.87,12.97)
   		(.18,13.66)

XYZ Corporation has total earnings of $500 Million which are
projected to remain constant. XYZ also has total shares outstanding of 300 million. The corporation
intends to distribute dividends to its shareholders according to the following schedule:
Period 1: Give a dividend payout rate of 40%
Period 2: Give a dividend payout rate of 100%.

Period 3 until forever: Give a dividend payout rate of 70%. Dividends are also projected to grow at a
rate of 4% every year forever.

(a) 5 Points. Find the price of XYZ corporation’s stock in period 2 (call it P2). Given P2 write
down the formula that would determine the (per share) price of XYZ’s stock today (P0). Assume
equity cost of capital is 8%. (NOTE: You have to plug in all relevant information into the formula
for full credit).

(b) 5 Points. What is the expected total return from this stock? Assume, you will sell the stock at
the end of period 2. (NOTE: To get full credit you need to write down the expression that would
calculate the total return)

(c) 5 Points. Suppose that in Period 3, XYZ also intends to start buying back some of its shares
outstanding and it intends to spend 20% of its earnings to do so. According to the total payout
model, what would be the stock price of XYZ Corporation in period 2?

(d) 5 Points. As of April 6th, 2020 one share of Microsoft’s stock traded at $165. On the other
hand, one share of stock by Berkshire Hathaway traded at $277,000. Provide one reasons that
might explain the large difference in the stock price between these corporations.

identify the type of distribution AND the probability asked for
a. a shockproof ballpen is subjected to a shock test wherein a ballpen is dropped on a floor a certain number of times. the probability that the ballpen will stop working is 0.22. let X be the number of falls in order for a ballpen to stop writing. find the probability that the pen is dropped 12 times in order for it to stop writing.

b. ilaw company delivers candles to its customers in boxes of 20. it has been discovered that 6 candles in every box won't light properly. a customer randomly selects 5 candles from a box, and demands to return the candles if at least 4 of the candles he picked will not light properly. let x denote the number of candles that won't light. what is the probability that the customer will return the candles ordered?

c. in a coffee shop, 45% of the customers prefer frapuccino. what is the probability that 6 of the bext 10 customers who will walk into the coffee shop will order frapuccino? let x be the number of customers who will choose a frapuccino drink?