1. The following examples of firm-specific or market risk? a. An oil company failing to find oil in one of its oil fields. b. GDP numbers beating expectations. c. The SEC finding accounting irregularities with a company.

1a. Why isn’t a portfolio’s standard deviation the same as its components?

1b .How might a drop in the price of oil cause both firm-specific and market risk effects?

2,  We have $25 thousand invested in ABC stock (beta=1.5), $50 thousand in DEF stock (beta=0.7), and $15 thousand in GHI stock (beta=1.2). What is the portfolio’s beta?

2a. Long term gov’t bonds are returning 4%. The equity risk premium is 5%. If XYZ stock has a beta of 0.6, what is its expected return?

I have the answers listed I just want to know if someone could show me the work step by step!

Q1. A ball of mass 60 g is dropped from a height of 3.4 m. It lands on the top of a frictionless ramp at height 1.8 m. The ramp is tilted at an angle of 20 degrees.

(a) What is the velocity of the ball at the top of the ramp? Answer: 5.6 m/s

(b) At the bottom of the ramp it collides with and sticks to a ball of mass 73 g. What is their velocity after the collision? Answer: 3.68 m/s

(c) The stuck together balls collide with a spring of spring constant 300 N/m. How much will they compress it? Answer: 0.077m

(d) They then go back up the ramp. How high will they go? Answer: 0.7 m

Assume for arithmetic, load/store, and branch instructions, a processor has CPIs of 1, 12, and 5, respectively. Also assume that on a single processor a program requires the execution of 2.56E9 arithmetic instructions, 1.28E9 load/store instructions, and 256 million branch instructions. Assume that each processor has a 2 GHz clock frequency.
Assume that, as the program is parallelized to run over multiple cores, the number of arithmetic and load/store instructions per processor is divided by 0.7 x p (where p is the number of processors) but the number of branch instructions per processor remains the same.

Find the total execution time for this program on 1, 2, 4, and 8 processors, and show the relative speedup of the 2, 4, and 8 processor result relative to the single processor result.

​Seventy-eight people participated in a study of weight loss with a specified diet. The following table lists the amount of weight loss for randomly selected participants when they followed the​ diet, catagorized by age group.

Is there evidence that different age groups have different amounts of weight​ loss?

Provide answers to the following question.

a. State the null and the alternative hypothesis for the test at the α=0.01 level.

b. Name the​ test, list the test statistic and the​ p-value for the test.

c. State the conclusion of the test in context of the problem.

Let’s look at some gravitational potentials and the density profiles that can generate them.

i) For ρ(r) = ρ◦r ◦^2/r^2 , what is the corresponding gravitational potential?

ii) For Φ(r) = −GM/[b + √ (b ^2 + r ^2)], what is the corresponding density profile?

iii) For Φ(R, z) = Φ◦ln[ (R ◦^2+R ^2+(z ^2/q^2))/R◦^2 ], what is the corresponding density profile ρ(R, z)? In this expression, the constant q controls the axis ratio of the potential, where q = 1 would be spherically symmetric and q < 1 means that the potential is “flattened” a bit along the z-axis. Does something strange happen along the z axis if q < 0.7 ?

Consider the markets for Milky Way and Snickers candy bars. Evaluated at the market equilibrium, the estimated price elasticities of demand are 1.6 and 0.7, respectively. Assume the price elasticity of supply for each good is 1.0.

a. Construct side-by-side diagrams in which the prices of both goods are assumed to be equal. Identify the equilibrium price and quantity in both markets.

b. Suppose a rise in input prices reduces the supply of both goods proportionately. Illustrate the impact of the supply reduction on the equilibrium price and quantity.

c. Using the graphs drawn to answer (b), which good experiences a relatively larger change in price, and which good experiences a relatively larger change in quantity?

d. What happens to consumer spending (i.e. total revenue) in each market? Explain your answer by identifying and explaining the price and quantity effects.

Airlines are concerned about the ages of their airplanes. Forty commercial airplanes randomly selected by the airline from the GLEN aviation company have the ages given below. If the true median age of the airplanes is more than 15 years old, the airline will be forced to update half of their airplanes at a great expense. Conduct the appropriate test using an significant value = 0.01. Does the airline need to update their airplanes? Do not assume normality. 3.2 22.6 23.1 16.9 0.4 6.6 15.5 22.8 26.3 8.1 15.6 17.0 21.3 15.2 18.7 11.5 4.9 5.3 5.8 20.6 23.1 24.7 3.6 12.4 27.3 22.5 3.9 7.0 16.2 24.1 0.1 2.1 7.7 10.5 23.4 0.7 15.8 6.3 16.9 16.8

2. A company claims that a certain vitamin contains 100% of your recommended daily allowance of vitamin C. You suspect that they are not putting as much vitamin C as they claim in their vitamins. The standard deviation of percent of daily allowance of vitamin C is 5%. You take an SRS of 5000 vitamins and find the average percent of daily allowance to be 99.8%.

(a) Use the appropriate methods to determine if your fears are true.

(b) Estimate the mean percent of your daily allowance of vitamin C in these vitamins.

(c) Was part (a) statistically significant? Why or why not?

(d) Was part (a) practically significant? Why or why not?

(e) You want to create a confidence interval with a confidence level of 90% and a margin of error no more than 0.7%. What is the smallest sample size you can use and get these requirements?

1. Use the information for securities X, Y and Z in the table below to answer parts a and b.

The risk-free rate is 2% and the expected return of the market portfolio is 8%.

1. According to the CAPM, are these securities overpriced, fairly priced or underpriced?
2. Using the CAPM, calculate the abnormal return of a portfolio that takes a long position in security X by $35,000, a short position in security Y by $15,000, and a long position in security Z by $5,000.
3. You have $100,000 and you want to set up a portfolio of security X and security Y with an abnormal return of 2.7% based on the CAPM. Specify the position to be taken (long or short) and the dollar amount to be invested in each security.

Use the information for securities X, Y and Z in the table below to answer parts a and b:

The risk-free rate is 2% and the expected return of the market portfolio is 8%.

1. According to the CAPM, are these securities overpriced, fairly priced or underpriced?
2. Using the CAPM, calculate the abnormal return of a portfolio that takes a long position in security X by $35,000, a short position in security Y by $15,000, and a long position in security Z by $5,000.
3. You have $100,000 and you want to set up a portfolio of security X and security Y with an abnormal return of 2.7% based on the CAPM. Specify the position to be taken (long or short) and the dollar amount to be invested in each security.