Consider a Tbill with a rate of return of 5% and the following risky securities:
Security A: E(r) = 0.15; Standard deviation= 0.2
Security B: E(r) = 0.10; Standard deviation= 0.15
Security C: E(r) = 0.17; Standard deviation= 0.28
Security D: E(r) = 0.13; Standard deviation= 0.25
If an investor wants to use the risk-free asset and one of the risky assets to form a complete portfolio, which risky asset should the investor choose?
Group of answer choices
Security B
Security D
Security C
Security A
In: Finance
Suppose Big Barrel Beer, Inc. produces two products
using essentially the same production methods (i.e., the costs of
manufacturing the two products are identical.) High Quality
Microbrew which has a price elasticity of demand of 0.2 and
LowBrow/LowCal Beer which has a price elasticity demand of
5.5.
a) Suppose current policy is to charge the same price per 6-pack
for each beer, what pricing changes can the firm implement to
increase profit?
b) Why would your recommendation increase profits? (What' is the
underlying economic thinking?)
In: Economics
In any given year, an insurance company believes the following:
-0.6 of drivers are safe.
-0.25 of safe drivers wear seatbelts
-0.10 of unsafe drivers wear seatbelts
-0.10 of safe drivers experience an accident in a year
-0.20 of unsafe drivers experience an accident in a year
-Given a driver experiences an accident, the driver has probability 0.01 they will be taken to the hospital if they were wearing a seatbelt
-Given a driver experiences an accident, the driver has probability 0.2 they will be taken to the hospital if they were not wearing a seatbelt
Given that a driver is taken to the hospital, what is the probability they were not wearing a seatbelt?
In: Statistics and Probability
Suppose a math teacher takes a sample of 169 students and calculates their mean math test score to be 78. suppose it is known that the test score is distributed normally with standard deviation of 9.
a. Give 90% confidence interval for u, the population mean, for the average math test score.
b. Interpret the interval in part a. in terms of the problem.
c. what is the value of z for a 98% confidence interval?
d.What is the value of z for 96% confidence interval?
e. How many students must be sampled in order to estimate u within +- 0.2 degree with 90% confidence?
In: Statistics and Probability
The thickness of a type of veneer is approximately normally distributed with mean 5 mm and standard deviation 0.2 mm.
a) What is the probability the thickness of a randomly selected piece is between 4.7 and 5.25 mm?
b) What is the probability the thickness of a randomly selected piece is greater than 5.3 mm?
c) What thickness is the 45th percentile (45% of the thicknesses are less than that value)?
d) What thicknesses constitute the middle 80% of the distribution?
e) Seven layers of veneer are used to make a sheet of plywood. What is the probability that three of them are thicker than 5.3 mm?
In: Statistics and Probability
Two separate capacitors, C1 and C2
C1 = 36 micro-Coulomb on 3 micro-Farad
C2 = 72 uC on 5 uF
C2 had a gap of 0.2m maintained by a compressed plastic spring inside the gap, the natural spring length was 0.5m, the compressed spring length was 0.2 m. Spring constant = 8,000 micro-Newton/ meter Action: Connected the two capacitors in parallel
Part A Find Q2-new, C2-new, new gap,
Part B Find the initial total energy, the final total energy
-use the energy formulas
In: Physics
A company financing itself or merging with an engineering
firm
profit of the R&D department in the next 10 years
predicted their values as follows:
Very successful Succesful
Unsuccessful
Develop it yourself 250 150
-100
Unıte 350 100 -100
The subjective (subjective) possibilities for the success of
R&D are 0.4, 0.4, 0.2, respectively.
It has been identified.
a) Which decision should be taken according to the expected value
criterion?
b) Which decisions according to Maksimaks, maksimin, Laplace,
Hurwicz (α = 0.50) decision criteria
should be taken?
In: Finance
You have a portfolio with a standard deviation of 21% and an expected return of 16%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add?
|
Expected Return |
Standard Deviation |
Correlation with Your Portfolio's Returns |
|
|
Stock A |
12% |
25% |
0.2 |
|
Stock B |
12% |
17% |
0.5 |
What is the Standard deviation of the portfolio with stock A?
What is the Standard deviation of the portfolio with stock B?
In: Finance
Consider a population of 1000 birds in Florida. Gene 1 is in Hardy-Weinberg equilibrium, and the frequency of the N allele is 0.2. Also, there are 30 BB and 80 bb individuals. Answer the following:
a. What is the frequency of the R allele?
b. What are the frequencies of the RR, RN, and NN genotypes?
c. How many individuals have the RN genotype?
d. How many individuals have the Bb genotype?
e. What are the frequencies of the B and b alleles?
f. If I selected a bird at random from this population, what is the probability that the bird will have a BB genotype?
In: Biology
3. Suppose each time Illini freshman sensation Ko Cockburn shoots a free throw he has
a chance of making it.
a. Construct a prior distribution for theta to be Beta(a,b). What values should a and b
take so that the prior mean is 0.5 and the prior standard deviation is 0.2?
b. In his first game against Nicholls State Ko made 2 foul shots out of 6 attempts.
What was the posterior distribution for theta after this game?
c. What was the mean of the posterior distribition?
d. What was the standard deviation of the posterior distribution?
In: Statistics and Probability