in addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of 12 %and a volatility of 25 % Currently, the risk-free rate of interest is 4 %Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 20%, volatility of 80 %, and a correlation of 0.2 with the Tanglewood Fund. Assume you follow your broker's advice and put50 % of your money in the venture fund:
a. What is the Sharpe ratio of the Tanglewood Fund?
b. What is the Sharpe ratio of your new portfolio?
In: Finance
Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to $12.4 trillion, government spending (G) equal to $3.4 trillion, transfer payments (TR) equal to $1.6 trillion, and taxes (T) equal to $4.7 trillion. Suppose the government increases its spending on national defense such that government spending increases by $0.2 trillion. What must happen to total savings (S)? That is, what is the dollar amount by which total savings changes? Assume the values for GDP, consumption, taxes, and transfer payments do not change. Provide your answer in trillions of dollars rounded to one decimal place.
In: Economics
Suppose that a random sample of size 64 is to be selected from a population with mean 40 and standard deviation 5. (a) What are the mean and standard deviation of the x sampling distribution? μx = 1 40 Correct: Your answer is correct. σx = 2 .625 Correct: Your answer is correct. (b) What is the approximate probability that x will be within 0.2 of the population mean μ? (Round your answer to four decimal places.) P = 3 .2510 Correct: Your answer is correct. (c) What is the approximate probability that x will differ from μ by more than 0.6? (Round your answer to four decimal places.) P =
In: Statistics and Probability
a) i. Determine the expected return and risk of a portfolio made up of 70 per cent of security X and 30 per cent of security Y if the correlation coefficient for the returns on X and Y is +0.2 Security Expected Return Standard Deviation of Return
X 12 per cent 15 per cent
Y 18 per cent 22 per cent
ii. Explain briefly why the risk of the portfolio specified above is below the weighted average of the risk of securities of X and Y.
b) Explain how increasing the number of securities in a portfolio is likely to reduce the risk of the portfolio but it is unlikely to eliminate all of the risk.
In: Finance
a) i. Determine the expected return and risk of a portfolio made up of 70 per cent of security X and 30 per cent of security Y if the correlation coefficient for the returns on X and Y is +0.2 Security Expected Return Standard Deviation of Return
X 12 per cent 15 per cent
Y 18 per cent 22 per cent
ii. Explain briefly why the risk of the portfolio specified above is below the weighted average of the risk of securities of X and Y.
b) Explain how increasing the number of securities in a portfolio is likely to reduce the risk of the portfolio but it is unlikely to eliminate all of the risk.
In: Finance
Find the design cooling and heating loads of UC 1017. Consider UC 1017 is a detached room. You are free to assume any values reasonably for the calculation. Consult different charts, tables and climate data as necessary. Assuming 50% fresh air and 50% of recirculated air passing through the evaporator coil and the by-pass factor of 0.2, find the dew point temperature of the coil and the capacity of the coil.
I need you to provide the Table and the calculation for everything.
the room size = Hight 6.6 m , width 18m, length 14.5m
I'll attach an example for a student work from last year that I'd like you to follow.
In: Mechanical Engineering
A tray tower provides 10 equilibrium stages for stripping
ammonia from a wastewater stream by
using a countercurrent air stream at 1 atm and 300 K. Assume that
the inlet water concentration
is 0.2 mole% ammonia, the inlet air does not have ammonia, and 1
SCM (standard cubic meter)
of air is fed to the tower per kilogram of wastewater. Here the
equilibrium curve is linear with
m= 1.414.
(a) Estimate the outlet molar concentration in the exit
water.
(b) Assuming that the Murphree efficiency for the process is 65%,
estimate the number of
real trays required for this process.
(c) How many real trays would be required to achieve ½ of the
concentration in (a)?
In: Other
pre lab question:
1. Assume for the moment that air consists of 80.00% nitrogen (N2) and 20.00% oxygen (O2) by volume. Use these figures and typical values for temperature and pressure (1.000 atm and 25.00°C) to calculate the density of air in g/L.
2. Explain how you will determine the mass of CO2 gas in your flask.
3. This experiment will require you to know the volume of the air/gas present in your flask. How will you measure this volume?
4. If you are use a graduated cylinder with markings in increments of 0.2 mL to measure liquids, you should interpolate and record volume readings to the nearest what?
In: Chemistry
The amount of milk that the American Cookie Company sells in a given week is random. Suppose the milk sells for $2.00 per cup and it costs the store $1.50 per cup. The following describes the distribution of demand for milk in a one week period. There is a probability of 0.14 that the store will sell 100 cups of milk; there is a probability of 0.2 that the store will sell 150 cups of milk; there is a probability of 0.34 that the store will sell 170 cups of milk; otherwise, the store will sell 220 cups of milk. What is the expected number of cups of milk the store will sell in a given week? (please express your answer using 2 decimal places)
In: Statistics and Probability
An economy has full-employment output of 6000. Government purchases are 1680. Desired consumption
and desired investment is given by
?? ? Cd= 3000-1500?+0.2?
?? ? Id= 500-3250?
where Y is output and r is the real interest rate.
a. (5 Points)What is the real interest rate that clears the goods market? Assume that output equals full employment
output.
b. (3 Points) Compute the amount of saving, investment and consumption in equilibrium.
c. (4 Points) What would happen to the equilibrium real interest rate if government purchases fell to
1600? Increase or decrease? Explain the intuition for the change. A diagram may be useful here.
In: Economics