Suppose your expectations regarding the stock market are as follows:
| State of the Economy | Probability | HPR | |
| Boom | 0.2 | 43% | |
| Normal growth | 0.4 | 14 | |
| Recession | 0.4 | -17 | |
Use above equations to compute the mean and standard deviation of
the HPR on stocks. (Do not round intermediate calculations.
Round your answers to 2 decimal places.)
In: Finance
The continuous random variable X has the following distribution: pX[x] = kx√(1 + 2x) (Hint: There is 1 + 2x in the square root.) for 1 ≤ x ≤ 4.
1-Determine k.
2-Determine the CDF of X.
3-Determine the mean of X.
4-Calculate P(0.2 < X < 0.5) only by using CDF of X.
In: Statistics and Probability
2. The tentacle of a squid
By what percentage would a squid tentacle increase in length when a circumferential muscle contracts with a strain of 0.2?
Answer: The final length is 1.56 times the initial length, which is an increase of 56%. But how do I get to this answer? Please show work and formulas used to get the provided answers. Thank you!
In: Physics
If Indiana County, Pennsylvania, coal with M = 3% and A = 8.5% is burned with 10% excess air, calculate the actual air fuel ratio and the ideal Orsat analysis (no CO and no unburned carbon). Also, determine the theoretical Orsat analysis if the HHV of the refuse is 5500 kJ/kg and the % CO in the dry flue gas is 0.2% of the dry flue gas.
In: Mechanical Engineering
The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
| Year | Nominal Return (%) | Inflation (%) |
| 2012 | 0.2 | 6.9 |
| 2013 | -16.0 | 7.0 |
| 2014 | -14.0 | 7.5 |
| 2015 | -42.5 | 11.8 |
| 2016 | 67.3 | 7.4 |
| 2017 | 28.0 | 4.0 |
a. What was the standard deviation of the market returns?
b. Calculate the average real return
In: Finance
|
Given that preference shares have an expected dividend stream of 20 cents in perpetuity and that the current market price (cum-dividend) of the preference shares is $2.40, calculate the cost of capital(kp) of these preference shares. For this question, I am not sure why the answer is 9.09% rather than 8.33% that ive calculated from 0.2/2.4. Kindly explain. |
|
In: Finance
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
| State of Economy | Probability of State of Economy |
Security Return If State Occurs |
||||||||||
| Recession | 0.4 | -11 | % | |||||||||
| Normal | 0.2 | 16 | ||||||||||
| Boom | ? | 23 | ||||||||||
In: Finance
After graduating from Yorkville University with a BBA you are
making a good salary and now want to begin investing. You are
analyzing two Canadian Banks as investment options. Bank of Nova
Scotia (BNS) and Bank of Montreal (BMO). The stock price of BNS is
current $65. The price of BNS next year will be $53 if the economy
is in a recession, $73 if the economy is normal, and $85 if the
economy is expanding. The likelihood of recession, normal or
expansion are 0.2, 0.6 and 0.2. respectively. BNS had suspended
their dividend due to the pandemic crisis and has a beta of
0.68. BMO has continued to pay its dividends and has an
expected return of 13%, a standard deviation of 34%, a beta of
0.45, and a correlation with BNS of 0.48. The market portfolio has
a standard deviation of 14%.
a) Assuming that the CAPM holds, what is the expected return and
standard deviation of BNS?
After careful analysis you decide to invest 60% of your portfolio
in BNS and 40% in BMO.
What are the ;
b) expected return
c) standard deviation
d) beta of this portfolio?
In: Finance
TB MC Qu. 9-315 Tharaldson Corporation makes ...
Tharaldson Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
| Direct materials | 6.5 | ounces | $ | 2.00 | per ounce | $ | 13.00 | ||
| Direct labor | 0.2 | hours | $ | 23.00 | per hour | $ | 4.60 | ||
| Variable overhead | 0.2 | hours | $ | 6.00 | per hour | $ | 1.20 | ||
The company reported the following results concerning this product in June.
| Originally budgeted output | 2,700 | units | |
| Actual output | 2,800 | units | |
| Raw materials used in production | 19,380 | ounces | |
| Purchases of raw materials | 21,400 | ounces | |
| Actual direct labor-hours | 500 | hours | |
| Actual cost of raw materials purchases | $ | 40,660 | |
| Actual direct labor cost | $ | 12,050 | |
| Actual variable overhead cost | $ | 3,100 | |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for June is:
In: Accounting
Table 1 below reports the present values (in £ million) of different investment projects at different interest rates in the future.
Table 1. Project NPVs.
| Future interest rate | |||||||
| Project | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% | 5.5% | 6.0% |
| A | 76.21 | 72.26 | 68.61 | 65.23 | 62.09 | 59.18 | 56.48 |
| B | 78.81 | 74.2 | 69.98 | 66.12 | 62.57 | 59.31 | 56.31 |
| C | 80.36 | 75.41 | 70.9 | 66.78 | 63.03 | 59.59 | 56.44 |
| D | 78.81 | 74.33 | 70.22 | 66.44 | 62.97 | 59.76 | 56.81 |
| E | 84.24 | 77.18 | 71.01 | 65.58 | 60.79 | 56.55 | 52.78 |
| probability | 0.1 | 0.15 | 0.2 | 0.2 | 0.15 | 0.1 | 0.1 |
Calculate the expected present value of each project. Which project maximises the expected value? Would you choose to proceed with this one?
Calculate the maximin and the maximax criteria.
Calculate the minimax regret criterion. When would this criterion be applied?
Calculate the expected value of perfect information. What does it describe?
In: Statistics and Probability