A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. Results for a given month are contained in the following table:

a. Calculate the total value added of all the manager’s decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

c. Calculate the value added from her stock selection ability within countries. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

There are two traffic lights on a commuter's route to and from work. Let X1 be the number of lights at which the commuter must stop on his way to work, and X2 be the number of lights at which he must stop when returning from work. Suppose that these two variables are independent, each with the pmf given in the accompanying table (so X1, X2 is a random sample of size n = 2). x1 0 1 2 μ = 1.3, σ2 = 0.81 p(x1) 0.3 0.1 0.6 (a) Determine the pmf of To = X1 + X2. to 0 1 2 3 4 p(to) (b) Calculate μTo. μTo = How does it relate to μ, the population mean? μTo = · μ (c) Calculate σTo2. σTo2 = How does it relate to σ2, the population variance? σTo2 = · σ2 (d) Let X3 and X4 be the number of lights at which a stop is required when driving to and from work on a second day assumed independent of the first day. With To = the sum of all four Xi's, what now are the values of E(To) and V(To)? E(To) = V(To) = (e) Referring back to (d), what are the values of P(To = 8) and P(To ≥ 7) [Hint: Don't even think of listing all possible outcomes!] (Enter your answers to four decimal places.) P(To = 8) = P(To ≥ 7) =

Swannamotosis is a variant of Neurofibromatosis-type 2. It is an autosomal dominant condition that shows both incomplete penetrance and variable expressivity. Sixty percent of individuals with at least one mutant allele will show the condition in the phenotype. Of those showing the phenotype, 20% have a severe version, 50% have a moderate version, and 30% have a mild version. If two heterozygous parents have a child, what is the chance that is will show the most severe form of the disorder? To calculate this we'll have to multiply _______ X ________ X ________ X _______. If a child of two heterozygous parents, does not have the condition, what is their chance that they do NOT have the allele? ________

Blank 1 Options: 1/2, 1/4, 2/3, 3/4, 1

Blank 2 Options: 0.4, 0.6, I dont need either of these values

Blank 3 Options: 0.2, 0.3, 0.5, I dont need any of these values

Blank 4 Options: 1/4, 1/2, 2/3, 3/4, I dont need any of these values

Blank 5 Options: 1/4 x 0.4 x 0.2, 2/3 x 0.4, 1/4 x 0.4(3.4), (1/4)/(0.4 x (3/4)), (1/4)/((1/4) + 0.4(3.4))

Celine is an analyst for a money management firm. She is asked by her supervisor to estimate the intrinsic value of the common stocks of Pacific Basin Corporation (PBC), so she collects the following information on PBC.

Year
Dividend per share
2019     $1.2
2020     $1.5
2021     $1.8
2022     $2.2
2023     $2.4

She forecasts that the price/earnings ratio for the year 2024 will be 20. In addition, the forecast earnings for the year 2024 are $6.4 per share. The expected market return is 10% and the risk-free rate is 3%. The variance of returns on the market index is 0.3 and the covariance of returns on PBC’s stocks and the market index is 0.45. The weighted average cost of capital of PBC is 10%.

After collecting the information, Celine starts to estimate the value of the common stocks of PBC. Here is the summary of her estimation.

WACC = 10%
Price (2024) = 20($6.4) = $128
Intrinsic value (2017) = 1.2/1.1 + 1.5/1.12 + 1.8/1.13 + 2.2/1.14 + 2.4/1.15 + 128/1.16
= $78.93
As the current market price is $75 per share, which is less than the intrinsic value of the stocks of PBC, it is recommended to buy PBC’s stocks

d State one advantage and one challenge of the method you suggested in part (c).

Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager’s portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4.

a-1. What was the manager’s return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)

a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)

b. What was the contribution of security selection to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

c. What was the contribution of asset allocation to relative performance? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

There are two traffic lights on a commuter's route to and from work. Let X₁ be the number of lights at which the commuter must stop on his way to work, and X₂ be the number of lights at which he must stop when returning from work. Suppose that these two variables are independent, each with the pmf given in the accompanying table (so X₁, X₂ is a random sample of size n = 2).

(a) Determine the pmf of T_o = X₁ + X₂.

(b) Calculate μ_To.
μ_To =

How does it relate to μ, the population mean?
μ_To =  · μ

(c) Calculate σ_To².

How does it relate to σ², the population variance?
σ_To² =  · σ²

(d) Let X₃ and X₄ be the number of lights at which a stop is required when driving to and from work on a second day assumed independent of the first day. With T_o = the sum of all four X_i's, what now are the values of E(T_o) and V(T_o)?

(e) Referring back to (d), what are the values of

P(T_o = 8) and P(T_o ≥ 7)

[Hint: Don't even think of listing all possible outcomes!] (Enter your answers to four decimal places.)

A scientist is studying the relationship between x = inches of annual rainfall and y = inches of shoreline erosion. One study reported the following data. Use the following information to solve the problem by hand, then use SPSS output to verify your answers. .

X         30        25        90        60        50        35       75        110      45        80

Y         0.3       0.2       5.0       3.0       2.0       0.5       4.0       6.0       1.5       4.0

a. What is the equation of the estimated regression line?

= ______________

b. Plot the data and graph the line. Does the line appear to provide a good fit to the data points?

c. Use the least-squares line to predict the value of y when x =39

d. Fill in the missing entries in the SPSS analysis of variance table

Source             DF                   SS                    MS                  F                      P

Regression       1                      37.938

Error                ____                _____              0.058               ____________

e) Is the simple linear regression model useful for predicting erosion from a given amount of rainfall?

f) What is the p-value?

g) A linear relationship ______________ exist between x and y.

h) The simple linear regression model ______________ useful for predicting erosion from a given amount of rainfall.

i) What is the coefficient of determination.(r-squared) or r?

j) Interpret the coefficient (r-squared) of determination.

A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. Results for a given month are contained in the following table:

a. Calculate the total value added of all the manager’s decisions this period. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

b. Calculate the value added (or subtracted) by her country allocation decisions. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

c. Calculate the value added from her stock selection ability within countries. (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below.

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $664,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%

Complete a Budgeted Income Statement