653 WordsDec 29, 20113 Pages

Statistics Midterm paper
1. : Identify the implied population in the information here.
Government agencies carefully monitor water quality and its effect on wetlands (Reference: Environment Protection Agency Wetland Report EPA 832-R-93-005). Of particular concern is the concentration of nitrogen in water draining from fertilized lands. Too much nitrogen can kill fish and wildlife. Twenty-eight samples of water were taken at random from a lake. The nitrogen concentration (milligrams of nitrogen per liter of water) was determined for each sample. The variable in this information is nitrogen concentration (mg nitrogen/l water).
a. number of fish
b. samples of water taken at random
c. the wetlands
d. nitrogen concentration (mg*…show more content…*

147 153 167 174 182 178 179
182 178 178 167 0 153 144
a. 144
b. 182
c. 167
d. 153
e. 178
5. Find the sample variance s2 for the following sample data. Round your answer to the nearest hundredth.
x: 23 17 12 35 29
a. 84.20
b. 67.36
c. 101.00
d. 88.84
e. 126.25
6. Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute .
x: 14 0 36 23 33 25 26 14 14 23 y: 6 5 26 17 24 17 17 5 6 6
a. 4607
b. 4803
c. 5332
d. 4243
e. 4940
Answers:
Queston 1: The population is d. - the nitrogen population in the entire lake.
Question 2: The technique is a census since all events are to be measured.
Question 3. The Pareto Chart is below:[pic]
Question 4: The mode is the most frequently occurring value in a set of data so here the mode is 178 so the answer is e.
Question 5. The samplle variance is 84.20 so the answer is a.
Question 6. The mean return for the Vanguard Total Stock Index is 20.8 while the mean return for the Vanguard Balanced Index is 12.9 (with bonds). Based on this data you would conclude that bonds do not reduce the overall risk of an investment portfolio since the mean return was actually less when the porfolio has bonds in

Related

## Beta Management

1114 Words | 5 Pages BETA MANAGEMENT COMPANY Q1. Calculate the variability (standard deviation) of the stock returns of California REIT and Brown Group during the past 2 years. How variable are they compared with Vanguard Index 500 Trust? Which stock appears to be riskiest? The stock returns for each month are given in Table 1. Based on the monthly returns, the standard deviation or variability of each stock has been calculated. The standard deviation for California REIT is 9.23% and the standard deviation for

## 12345678

7123 Words | 29 PagesLIST OF INVESTMENT BANKS LIST OF MUTUAL FUNDS LIST OF TIME SERIES TESTS CARRIED OUT ON DATA EMPERICAL RESULTS FOR INVESTMENT BANKS EMPERICAL RESULTS FOR MUTUAL FUNDS TOP INVESTMENT BANKS TOP TEN MUTUAL FUNDS BY ASSETS SUMMARY STATISTICS FOR INVESTMENT BANKS SUMMARY STATISTICS FOR MUTUAL FUNDS PAGE NUMBER 16 16 17 20 21 24 25 26 27 PAGE 6 LIST OF FIGURES S. No 1). 2). 3). 4). 5). 6). 7). TITLE FORMULA FOR UNCERTAINTY PRINCIPLE MODEL TO BE USED AVERAGE ECONOMIC MASS OF INVESTMENT BANKS AVERAGE

## Alex Sharpe's Portfolio Solution Essay

1231 Words | 5 PagesContext: Alex Sharpe currently invests her children’s educational savings in Vanguard 500 Index Fund, which tracks the performance of S&P 500 and is passively managed. However, she is now considering switching her investment strategy to a more active one to achieve better outcomes. Hasbro, a toy manufacturer, and Reynolds, a tobacco firm, have come into Sharpe’s sight and she wants to choose one of them and invest a small proportion of equity funds in it. In order to select a more appropriate

## Summer Internship Report on Mutual Fund : Performance Evolution & Marketing

20554 Words | 83 Pagesof Mutual Fund according to his choice and becomes the unit holder of the scheme. Fund manager in different types of suitable stock and securities, bonds and money market instruments then invests the invested money in a particular scheme of a Mutual Fund. Each Mutual Fund is managed by qualified professional men, who use this money to create a portfolio, which includes stock and shares, bonds, gilt, money-market instruments or combination of all. Thus Mutual Fund will diversify your portfolio over

## Evaluation of Walgreens Company

5992 Words | 24 PagesWalgreens CO. | EVALUATION OF WALGREENS CO. | Managerial finance project | | Contents Walgreens CEO 1 The board of directors 2 How much trading volume is there on the stock? 4 Does the firm has any has publicly traded debt? 4 Societal constraint 4 Liquidity ratios 4 Overall risk of company 8 Marginal investors in the company 9 Estimate the default risk and cost of debt of your company 9 Weights of debt and equity 10 Regression 10 WACC and CAPM 11 Evaluating

## Thai Mutual Fund Performance Skill or Luck

7969 Words | 32 Pagesperiod. We apply a Bootstrap methodology to distinguish between “skill” and “luck” for the individual funds. A Bootstrap approach is necessary because the nonnormal distributions of individual fund alphas. This study points to the existence of genuine stock-picking skill among the top performing Thai equity mutual funds, performance which is not solely due to good luck. At the bottom fund, our analysis strongly rejects the hypothesis that most poor performing funds are merely unlucky. Most of these funds

## Damodaran Book on Investment Valuation, 2nd Edition

398423 Words | 1594 Pageseasier to value than others and the details of valuation will vary from case to case. Thus, the valuation of a share of a real estate property will require different information and follow a different format than the valuation of a publicly traded stock. What is surprising, however, is not the differences in valuation techniques across assets, but the degree of similarity in basic principles. There is undeniably uncertainty associated with valuation. Often that uncertainty comes from the asset being

## Essay on Martin Blair Case Study

6013 Words | 25 Pagessignaled my willingness to consider this, and he did some work talking to his friends HARVARD BUSINESS SCHOOL | BRIEFCASES 3 914-521 | Martin Blair and they came back with the term sheet. Basically, they invested $1 million in a preferred stock that paid a small (accruing) dividend. The shares had a liquidation preference, and represented about a 33% ownership stake in the business. I thought it was a fair deal. I am sure that Scott’s involvement with our landlord, and the fact that they

## Stephen P. Robbins& Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall

393164 Words | 1573 Pagesconcerned with starting off with the right job than his son is now. “You maneuvered and you did not worry what the maneuvering would lead to,” David said. “You know it would lead to something good.” Scott’s grandfather, William Nicholson, a retired stock broker, has even more trouble understanding Scott’s travails. “I view what is happening to Scott with dismay,” the grandfather said. Despite feeling pressure from his parents to find a job (“I am beginning to realize that refusal is going to have repercussions”)

### Beta Management

1114 Words | 5 Pages### 12345678

7123 Words | 29 Pages### Alex Sharpe's Portfolio Solution Essay

1231 Words | 5 Pages### Summer Internship Report on Mutual Fund : Performance Evolution & Marketing

20554 Words | 83 Pages### Evaluation of Walgreens Company

5992 Words | 24 Pages### Thai Mutual Fund Performance Skill or Luck

7969 Words | 32 Pages### Damodaran Book on Investment Valuation, 2nd Edition

398423 Words | 1594 Pages### Essay on Martin Blair Case Study

6013 Words | 25 Pages### Stephen P. Robbins& Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall

393164 Words | 1573 Pages