Jupiter Equipment, Co. (JE) has 20 million common shares outstanding that currently trade at $11 per share. The company also has $55 million of bank debt that costs 5% per year. The estimated standard deviation of JE’s stock return is 0.5, the estimated standard deviation of S&P 500 index is 0.3, and the correlation between the JE’s stock and the S&P 500 is 0.45. If the market risk premium is 6%, the risk-free rate is 2% and the firm's tax rate is 35%, compute the weighted average cost of capital.

A novice marksman is shooting at a target 1000 feet away. The probability of his hitting the target is 0.3. Your answer should be rounded to the nearest thousandth.

a) What is the probability that he hits the target 3rd time on the 5th shot?

b) What is the probability that the number of shots he will have to make to hit the target is more than 6?

c) What is the probability that he will need 6 shots to hit the target the first time?

d) What is the probability that the number of shots he has to take to hit the target is 10 shots or fewer?

A stock's returns have the following distribution:

Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Stock's expected return:   %

Standard deviation:   %

Coefficient of variation:  

Sharpe ratio:  

A stock's returns have the following distribution:

Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.

Stock's expected return:   %

Standard deviation:   %

Coefficient of variation:  

Sharpe ratio:  

Use the confusion matrixes to answer the questions below. Record your answers in a word document. Explain your responses and include screen shots where requested. A 5000 row dataset was used to build a model to predict if a person would accept a marketing offer for a personal loan (Personal Loan = Yes). It was partitioned into Training, Validation, and Test with the model results above.

If you were to decrease the cutoff to 0.3 how would that impact your FP and FN counts. Would they increase or decrease? Would your Model Cost increase or decrease?

A stock's returns have the following distribution:

1. Calculate the stock's expected return. Round your answer to two decimal places.
   %

2. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
   %

3. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

A) An Olympic archer is able to hit the bull’s eye 80% of the time. Assume each shot is independent of the others. She will shoot 6 arrows. Let X denote the number of bull’s eyes she makes.

Find the mean of the probability distribution of X. Do not round

B) The GPA of students at a college has a mean of 2.9 and a standard deviation of 0.3. Scores are approximately normally distributed.

Suppose that the top 6% of students are eligible for the Honors Program. Find the GPA which is the cutoff score for students to qualify for this program. Round to the nearest hundredth.

For each of the following cases, determine whether the economy’s labour demand for unskilled workers will decrease or increase:

a) The cross-elasticity of factor demand between unskilled and skilled workers is –0.3, and government implements a policy that results in an increase in demand for skilled workers.

b) The cross-elasticity of factor demand between unskilled workers and capital is 1, and government implements a policy that results in an increase in the demand for capital.

c) The cross-elasticity of factor demand between unskilled and immigrant workers is –1, and government implements a policy that results in an increase in demand for immigrant workers.

A machine produces pipes used in airplanes. The average length of the pipe is 16 inches. The acceptable variance for the length is 0.3 inches. A sample of 17 pipes was taken. The average length in the sample was 15.95 inches with a variance of 0.4 inches.