A fund manager has a portfolio worth $50 million with a beta of 0.80. The manager is concerned about the performance of the market over the next two months and plans to use three-month futures contracts on the S&P 500 to hedge the risk. The current level of the S&P 500 index is 1250, the risk-free rate is 6% per annum, and the dividend yield on the index is 3% per annum. The current 3-month S&P 500 index futures price is 1259, and one contract is on 250 times the index.

(a) What position should the fund manager take to eliminate all risk exposure to the market over the next two months? (β* =0) How many three-month S&P 500 futures contracts should the fund manager buy or sell now? (Rounding to the nearest whole number.)

(b) Calculate the effect of your strategy on the fund manager’s returns if the level of the market index in two months is 1,000. Assume that the one-month futures price is 0.25% higher than the market index level in two months. What would be the expected value of the fund manager’s hedged portfolio (including the spot and futures positions) in two months?

An investor purchased 300 shares of ABC Company when it IPO’d at $30 per share. Two years later, the company executed a 3 for 2 stock split when the shares were trading at $45. One year after that, the investor sold 200 shares at $40. What is her profit on the sale?

a$2,000

b$2,500

c$3,000

d$4,000

Compute the image location and magnification of an object 40 cm from a doublet thin lens
combination having focal lengths f1 = +20 cm and f2 = −60 cm, given that the second
lens is positioned 12 cm behind the front one. If the object is two centimeters high determine
the size and the type of the image. Make a sketch of appropriate rays that support your
findings.

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Car Age (years) Selling price

1 9 11.6

2 5 10.0

3 12 3.2

4 15 3.7

5 7 7.0

6 6 12.5

7 8 7.8

8 13 8.4

9 12 8.4

10 15 4.8

11 4 9.2

12    4 7.3

a) Determine regression equation?

a=   

b=

b) Estimate the selling price for 8 years old car

c) Interpret the regression equation

There is way to find in excel formula to find the regression equation please help me on that

The owner of Maumee Ford-Mercury-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year.

Car Age (years) Selling price

1 9 11.6

2 5 10.0

3 12 3.2

4 15 3.7

5 7 7.0

6 6 12.5

7 8 7.8

8 13 8.4

9 12 8.4

10 15 4.8

11 4 9.2

12    4 7.3

a) Determine regression equation?

a=   

b=

b) Estimate the selling price for 8 years old car

c) Interpret the regression equation

There is way to find in excel formula to find the regression equation please help me on that

Beth Company purchased two identical inventory items. The first purchase cost $8 and the second cost $10. The Company sold one of the items for $21. If the Company uses the LIFO cost flow method, the amount of gross margin shown on the income statement will be $______

Consider the following regular expression meta operators:

( ) [ ] { } . * + ? ^ $ | \

For each of the following, give one example of strings which the regular expression would match.

Describe (colloquially, in a manner that a non-technical person would understand) the set of strings that the pattern is designed to match.

Each regular expression is enclosed in the pair of '/' characters below.

[2 marks each]

(a) /^[a-z][0-9]*\.$/

(b) /([0-9]+)\s\w+\s\1/

To determine whether patients are responsive to a particular chemotherapeutic agent, colonies of cells are grown from each patient and then treated with the agent in question. To compare two agents, two samples are prepared simultaneously, from each patient, one sample treated with each drug, and the number of colonies in the culture counted. The data listed below show the results of such an experiment. On each line, the colony counts the resulting from treatment 1 and treatment 2 are given for a particular patient.

Do the two treatments have the same effect on colony formation? Use two techniques, one parametric and one nonparametric, to answer this question. This is a paired data problem.

Summarize all results giving hypotheses, significance level, tests performed, statistics, and conclusions.

Case Study One

Has Gold Lost Its Luster?

Please use ONLY one Excel file to complete the case study and upload the Excel file to the submission link (Week 3 Case Study) for grading. Please clearly mark your answers (either highlight or font colors) and grammar counts.

No credit will be granted for problems that are not completed using Excel.

In 2011, when the Gallup organization polled investors, 34% rated gold the best long-term investment. In April of 2013 Gallup surveyed a random sample of U.S. adults. Respondents were asked to select the best long-term investment from a list of possibilities. Only 241 of the 1005 respondents chose gold as the best long-term investment. By contrast, only 91 chose bonds.

1. Compute the standard error for each sample proportion. Compute and describe a 95% confidence interval in the context of the question.
2. Do you think opinions about the value of gold as a long-term investment have really changed from the old 34% favorability rate, or do you think this is just sample variability? Explain.
3. Suppose we want to increase the margin of error to 3%, what is the necessary sample size?
4. Based on the sample size obtained in part c, suppose 120 respondents chose gold as the best long-term investment. Compute the standard error for choosing gold as the best long-term investment. Compute and describe a 95% confidence interval in the context of the question.
5. Based on the results of part d, do you think opinions about the value of gold as a long-term investment have really changed from the old 34% favorability rate, or do you think this is just sample variability? Explain.

Imagine that you are preparing taxes for a local tax service provider. A married couple named Judy and Walter Townson has come to you to seeking assistance with their federal income taxes. During your meeting with the Townsons, you gather the following information:

-they are both 55 years of age
-They have two daughters and one son. One daughter (25) is married with children. One daughter (20) is living at home and attending college. Their son (16) is a junior in high school.
-They are currently paying for their college-student daughter to attend school full time.
- Judy is employed as a teacher and makes $60,000 a year. She used $500 of her personal funds to purchase books and other supplies for her classroom.
-Walter is employed as a CPA and makes $100,000 a year
- They provided you a 1099-INT which reported $4,500 in the interest of which $500 was saving bonds interest
- They offered you a 1099-DV which said $300 in dividends
-They received a state tax refund last year of $385
- They provided you a list of expenses including: doctors bill $800, Prescriptions $400, New glasses $2000, dental bills $560, braces $5000, Property taxes for their two cars of $800, which included $50 in decal fees, real estate taxes $4500, mortgage interest $12000, Gifts to charities $1,000, GoFunMe contribution to local families in need $100, and Taxes preparation fees for last years taxes $400.

Consider the most beneficial way for Judy and Walter to file their federal income tax return. Prepare a brief written summary that addresses the following:

-Estimated taxable income for Judy and Walter (please show compilations)
-Summary of tax return, including andy suggestions or tax planning consideration
- Explain how you determined the filing status, dependents, and use of standard/ itemized deduction

The specific course learning outcomes associated with this assignment are:

1. Review tax authories and sources of tax law
2. Assess the concepts of gross income and strategies to minimize gross income
3. Examine deductions from income, limitations on those deductions, and strategies for maximizing deductions.