Consider an investor who wishes to invest 40% allocation to defensive investments and 60% allocation to growth investments. The investor has worked out the forecasted volatility, expected return and correlation between the two types of investments as below:

The correlation between growth and defensive investments is 0.05

Calculate the return and volatility of the portfolio.

Group of answer choices

8.6% and 11.18%

8.6% and 11.06%

8% and 11.06%

None of the other answers

8% and 11.18%

Python program

A number game machine consists of three rotating disks labelled with the numbers 0 to 9 (inclusive). If certain combinations of numbers appear when the disks stop moving, the player wins the game.

The player wins if

• the first and third numbers are the same, and the second number is less than 5, or
• all three numbers are the same, or
• the sum of the first two numbers is greater than the third number;

otherwise the player loses.

Write a Python program to simulate this number game by randomly generating 3 integer values between 0 and 9 (inclusive), and printing whether the player has won or lost the game.

To randomly generate a number between and including 0 and 9, use the randintmethod from random library module. For example, x = random.randint(1,100)will automatically generate a random integer between 1 and 100 (inclusive) and store it in x.

Sample output 1:

Random numbers: 2 3 5
You lose.

Sample output 2:

Random numbers: 7 7 0
You win!

1. According to the Capital Asset Pricing theory, what return would be required by an investor whose portfolio is made up of 40% of the market portfolio (m) and 60% of Treasury bills (i.e. risk-free asset)? Assume the risk-free rate is 3% and the market risk premium is 7%?                                                                                          

2. You are considering investing in the following two stocks. The risk-free rate is 7 percent and the market risk premium is 8 percent.

1. Compute the expected and required return (using CAPM) on each stock.   
2. Which asset is worth investing? Support your answer with calculations.    

3. Which pair of stocks used to form a 2-asset portfolio would have the greatest diversification effect for the portfolio? Briefly explain.

(d)   Explain the terms systematic risk and unsystematic risk and their importance in determining    investment return.

(Each of the following parts is independent.)

1. According to the Capital Asset Pricing theory, what return would be required by an investor whose portfolio is made up of 40% of the market portfolio (m) and 60% of Treasury bills (i.e. risk-free asset)?  Assume the risk-free rate is 3% and the market risk premium is 7%?   

2. You are considering investing in the following two stocks. The risk-free rate is 7 percent and the market risk premium is 8 percent.

1. Compute the expected and required return (using CAPM) on each stock.   
2. Which asset is worth investing? Support your answer with calculations.   

3. Which pair of stocks used to form a 2-asset portfolio would have the greatest diversification effect for the portfolio? Briefly explain.

(d)       Explain the terms systematic risk and unsystematic risk and their importance in determining        investment return.   

*Please include Spreadsheets and formulas, if applicable*

1. The distribution system for the Herman Company consists of three plants, two warehouses, and four customers. Plant capacities and shipping costs per unit (in $) from each plant to each warehouse are as follows
   

Customer demand and shipping costs per unit (in $) from each warehouse to each customer are as follows:

1. Formulate a linear programming model of this transshipment problem.  Write it below.

2. Solve the linear program to determine the optimal shipping plan and write it below. What is the minimal shipping cost?

Start Node End Node Units shipped

1 4 _____________

1 5 ____________

2 4 ____________

2 5 ____________

3 4 _____________

3 5 ____________

4 6 _____________

4 7 _______________

4 8 _____________ Total Cost=_____________________

4 9 _____________

5 6 ______________

5 7 ______________

5 8 ______________

5 9 ______________

Listed below are attractiveness ratings made by participants in a speed dating session. Each attribute rating is the sum of the ratings of five attributes (sincerity, intelligence, fun, ambition, shared interests).

Use a 0.05 significance level to test the claim that there is a difference between female attractiveness ratings and male attractiveness rating by following the steps below:

(a) State the null and alternative hypotheses, indicate the significance level and the type of test (left-, right-, or two-tailed test).

(b) Calculate by hand the test statistic.

(c) Use the appropriate sheet in the Hypothesis Test and Confidence Interval template to complete all relevant computations (including the test statistic: compare with (b) to confirm your calculation is correct).

(d) Use the P-value obtained in (c) to explain whether or not the null hypothesis is rejected.

(e) What can be concluded based off this data?

(f) Are there any potential issues related to the validation of the result (Hint: the subjective nature of the measures)

Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry(s) to recognize this sale is (are) required if Sunrise Flowers uses a perpetual inventory system?

Unlike manufacturers and merchandisers, service companies do not incur operating expenses.

TRUE or FALSE and why

Your express package delivery company is drawing up new zones for the location of drop boxes for customers. The city has been divided into six zones. You have targeted seven possible locations for drop boxes. The list of which zones the drop boxes could serve is shown below

Develop a model to find out the locations to use that provides the smallest number of locations yet make sure that each zone is covered by at least two boxes. Define variables if needed

You must fill out the table below, then you must find the values for a, b1 and b2, finally you must determine how much the profits would be if you invest 10 thousand dollars in advertising and if you increase it to 20 sellers. REMEMBER all the procedures and formulas should appear.

We evaluated the number and distribution of M&M Minis® candies. A sample of 30 bags was collected and the data is reported in the attached Excel file. This study examined the color percentages and the total number of candies in each bag.

If a random sample of 50 bags is selected, find the probability that the mean number of candies in a bag is at least 56 candies. Assume the total number of candies is normally distributed. F) Assume the total number of candies is normally distributed, find a 95% confidence interval for the mean total number of candies.