Check My WorkеВookProblem Walk-ThroughA stock's returns have the following distribution:Demand for theProbability of thisRate of Return ifCompany's ProductsDemand Occurring this Demand OccursWeak0.1(28%)Below average0.1(14)Average0.314Above average0.340Strong0.2601.0Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places.Stock's expected return:%Standard deviation:%Coefficient of variation:Sharpe ratio:

Answered: Image /qna-images/answer/55eda30f-29af-465f-bbe5-e0e61589e8b8.jpg

Answered: 1.0 Assume the risk-free rate is 4%.…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

The following table shows predicted product demand using your particular forecasting method along with the actual demand that occurred: FORECAST ACTUAL 1,515 1,585 1,415 1,515 1,715 1,615 1,755 1,680 1,805 1,730 Compute the tracking signal using the mean absolute deviation and running sum of forecast errors.
Is there a relationship between smoking and alcohol consumption? No Alcohol Low Alcohol Medium Alcohol High Alcohol Marginal Total Never Smokes 450 205 190 75 Smoker 425 255 170 30 Marginal Total Round each of the following to two decimal places: What is the expected frequency of people who never smoke and do not consume alcohol? What is the expected frequency of smokers who do not consume alcohol? What is the expected frequency of people who never smoke and consume high amounts of alcohol? What is the expected frequency of smokers who consume high amounts of alcohol?
A proposed project has the following cash flow estimates.Assuming statistically independent cash flows, a normally distributed net present value, and a minimum attractive rate of return of 15%, determine the following. For the following questions, employ an analytical solution: a. the mean and standard deviation of net present value. b. the probability that the net present value is negative. c. the probability that the net present value is greater than $1,000,000. Assume the initial investment and annual receipts are normally distributed. d. Using a Monte Carlo simulation with 10,000 iterations, estimate the probability that the present worth is negative.
The following table relates to Stock ABC’s return:Demand for CompanyABC’s products Probability of thisdemand occurring Rate of return if thisdemand occursWeak 0.15 (50%)Below average 0.175 (5%)Average 0.35 15%Above average 0.175 26%Strong 0.15 60% 1.0 Required:Calculate Stock ABC’s expected return, standard deviation, and coefficient of variation.
The recent economic downturn resulted in the loss of jobs and an increase in delinquentloans for housing. In projecting where the real estate market was headed in the comingyear, economists studied the relationship between the jobless rate and the percentage ofdelinquent loans. The expectation was that if the jobless rate continued to increase, therewould also be an increase in the percentage of delinquent loans. The following data showthe jobless rate and the delinquent loan percentage for 27 major real estate markets. a. Compute the correlation coefficient. Is there a positive correlation between the joblessrate and the percentage of delinquent housing loans? What is your interpretation?b. Show a scatter diagram of the relationship between the jobless rate and the percentage
What is the age distribution of promotion-sensitive shoppers? A supermarket super shopper is defined as a shopper for whom at least 70% of the items purchased were on sale or purchased with a coupon. Age range, years 18-28 29-39 40-50 51-61 62 and over Midpoint x 23 34 45 56 67 Percent of super shoppers 10% 41% 19% 9% 21% Compute the expected age ? of a super shopper. (Round your answer to two decimal places.) ? =______ yr Compute the standard deviation ? for ages of super shoppers. (Round your answer to two decimal places.) ? = ______yr
The table below contains data about the yearly unemployment rate and poverty rate for Free State Province for a period of 10 years (from 2010 - 2019). Assume that unemployment rate and poverty rate are normally distributed. NB: use the values as they appear in the data table to obtain all of your estimates. years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unemployment rate 3.5 4.4 5.2 2.8 3.9 4.0 3.8 3.3 4.8 3.1 Poverty rate 5.1 6.3 7.5 5.3 7.5 6.8 5.3 6.0 6.4 4.2 a. Use ordinary least squares (OLS) to fit the sample regression function (poverty rate)i=b0+b1(unemployment rate)i+ei to the data. Write down the estimated sample regression function and interpret your estimate of b1. b. Estimate and interpret the coefficient of determination, R^2. c. Does the poverty rate increase as unemployment increases? In other words, is the coefficient of unemployment rate (b1) positive? Test at the 5% level. d. Estimate a 90% prediction interval for poverty rate, if…
Compute the expected age μ of a British nurse in 1851. Assume that the table below shows the age distribution of nurses in Great Britain in 1851. Round your answer to nearest hundredth. Age range (yr) 20–29 30–39 40–49 50–59 60–69 70–79 80+ Midpoint (x) 24.5 34.5 44.5 54.5 64.5 75.5 84.5 Percent of nurses 5.7% 9.6% 19.5% 29.1% 24.9% 9.0% 2.2%
The forecaster in augments her AR(4) model for IP growth to include four lagged values of ΔRt, where Rt is the interest rate on 3-month U.S. Treasury bills (measured in percentage points at an annual rate).a. The Granger-causality F-statistic on the four lags of ΔRt is 4.16. Dointerest rates help predict IP growth? Explain.b. The researcher also regresses ΔRt on a constant, four lags of ΔRt andfour lags of IP growth. The resulting Granger-causality F-statisticon the four lags of IP growth is 1.52. Does IP growth help to predictinterest rates? Explain.
The customer demand for a particular smart phone during Year 0 to Year 5 is given as 1,056,000, 1,032,000, 1,093,000, 1,024,000, 1,066,000, and 1,072,000. Using the Holt forecasting model with trend, what is the forecasted demand in year 10, where w = 0.4 and v = 0.5?a) 1,071,874b) 1,075,573c) 1,077,488d) 1,083,816
A proposed project has the following cash flow estimates. Assuming independent cash flows, a normally distributed net present value, and a minimum attractive rate of return of 18%, determine the following. For the following questions, employ an analytical solution: a. The mean and standard deviation of net present value. b. The probability that the net present value is positive. c. The probability that the net present value is greater than $5,000. Assume the initial investment and annual receipts are normally distributed. d. Using a Monte Carlo simulation with 10,000 iterations, estimate the probability that the present worth is positive and estimate the probability that the present worth is greater than $5,000.
Milky Way Enterprises is a Polokwane-based supplier of cheese products to the South African market. The operations manager has extracted the following data in Table 1, representing the quantity of cheese products (in tons) produced weekly by Milky Way Enterprises during the 2021 financial year. Based on the measures of central tendency of the production data in Table 1 above, which of the following is correct?A The production data is normally distributed.B The production data is skewed to the right.C The production data is multimodal.D The production data is skewed to the left.

SEE MORE QUESTIONS

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS