The Chahad Bank wants to open a new branch in a distant city with very different economic conditions. Currently, the bank has an expected return of 15% with a standard deviation of 7%. The new branch is expected to have a return of 20% with a standard deviation of 10%. The correlation between the bank's returns and the returns from the new branch is -0.3. The new branch is expected to contribute 10% of the bank's revenues. What is the expected return for the bank if they add the new branch?
In: Finance
3. In the US economy, nearly half of all workers employed by private firms work at the 0.3% of firms that have 500 or more employees.
a. What does this relationship mean for the power relationship between large firms and the labor force?
b. What do you think these large firms having such a market share of labor means for labor prices (wages)?
c. Can you propose a policy that would counteract this power imbalance?
In: Economics
The real risk-free rate, r*, is 1.6%. Inflation is expected to average 1.3% a year for the next 4 years, after which time inflation is expected to average 4.2% a year. Assume that there is no maturity risk premium. A 10-year corporate bond has a yield of 8.4%, which includes a liquidity premium of 0.3%.
What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places.
In: Finance
Ten policyholders file insurance claims. Three of these claims are fraudulent. Three of the ten claims are randomly selected for thorough investigation. If X represents the number of fraudulent claims in the sample, P(X = 0) is _______________.
a. 0.7083 b. 0.2917 c. 0.0083 d. 0.3622 e. 0.5
QUESTION 19 For #18, what is the mean (expected) number of fraudulent claims in the sample?
a. 0.3 b. 0 c. 1.5 d. 0.9 e. 3
In: Statistics and Probability
[Positive test] A patient is tested for a virus that is believed to be present in 5% of the population. If the test result is positive, compute the chance the patient actually has the virus… a. If the false-positive rate is 4% and the false-negative rate is 1% b. If the false-positive rate is 2% and the false-negative rate is 0.3% c. If the false-positive rate is 0.1% and the test never gives a false negative. d. If the test never gives a false-positive or a false-negative.
In: Statistics and Probability
Q3. 40% of 500 employees of a company are females (other males). 30% of the employees are credit card
holders, including 60 females. Use the contingency table for the problem situation to find the
probability that an employee picked at random is:
a. A female or is not credit card holder? (0.82) b. A male or a credit card holder? (0.72)
c. A female and a credit card holder? (0.12)
d. A credit card holder if we know that the employee is a male? (0.3)
In: Statistics and Probability
Use the following information for Questions 23-24:
You are the manager of Lobo Corporation and you must decide between two mutually exclusive projects.The following information is available for the projects:
| Project A | Project B | |
| Annual Revenues | 985,000 | 725,000 |
| Annual Operating Costs | 360,000 | 400,000 |
| Initial Investment | 1,800,000 | 800,000 |
| Salvage Value | - | - |
| Project Life | 5 | 5 |
| NPV | ??? | 497,725 |
| IRR | 0.22 | 0.3 |
Required:
Compute the NPV for Project A.
In: Accounting
A statistician claims that the proportion of students who will vote for Mr. K to be the next president is 0.54 with the standard deviation of 0.3.
In: Statistics and Probability
4. Calculate the percent recovery for each component if 0.047 g of fast component and 0.038g of slow component, when you started with 0.103 g of mixture.
5. What is the Rf value for slow component using 30% ethyl acetate/hexane? Distance of first spot 0.3 cm, distance of the second spot 4.7 cm and the solvent traveled 6.1 cm.
These questions relate to a TLC and colum chromatography organic chemistry lab
In: Chemistry
A 10 m3 mixture solution contains molecules A, B and C in water at ambient temperature.
Calculate:
(a) Each species mass concentration.
(b) Their molar concentration.
(c) Total mass concentration and molar concentration.
(d) Mass and mole fraction.
given:
Vmix= 10 m3
mA= 0.3 kg , mB= 0.5 kg , mC= 0.4 kg , mH2O= 9.8 kg
MWA= 50 , MWB= 250 , MWC= 10 , MWH2O= 18
In: Other