J 2please answer why the answer is security A. 11TB MC Qu. 05-48 (Static) Consider a Treasury bill with a...Consider a Treasury bill with a rate of return of 5% and the following risky securitiesSecurity A BA-015, variance 00400Multiple ChoiceSecurity & B-010, variance 00225Security C 84-012 variance 01000Security D: 84-013, variance-00625The investor must develop a complete portlako by combining the risk-free asset with one of the securities mentioned above. The security the investor should choose as part of her complete portfulo to achieve the bestCAL would beDOOOsecurity Asecurtysecurity Cplèted so far, it does not indicate completionsecurity DReturn to que

Given that: Following are the risky securities: Security A: E(r) = 0.15; variance = 0.0400 Security…

Answered: 11 TB MC Qu. 05-48 (Static) Consider a…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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. you are interested in whether excess risk-adjusted return (alpha) is correlated with mutual fund expense ratios for uS large-cap growth funds. The following table presents the sample. Mutual Fund. 1 2 3 4 5 6 7 8 9 -0.52 -0.13 -0.6 -1.01 -0.26 -0.89 -0.42 -0.23 -0.6 Alpha(X) Expense Ratio 1.34 0.92 1.02 1.45 1.35 0.5 1 1.5 1.45 Formulate null and alternative hypotheses consistent with the verbal description of the research goal. identify the test statistic for conducting a test of the hypotheses in Part a. Justify your selection in Part b. D. Determine whether or not to reject the null hypothesis at the 0.05 level of signifi- cance.
1.1 The alternative hypothesis is: H1: CVD and Enrollment Site are dependent. H1: The correlation between CVD and Site is zero. H1: CVD and Enrollment Site are independent. H1: The covariance between CVD and Enrollment Site is negative. H1: The covariance between CVD and Site is zero. H1: The covariance between CVD and Enrollment Site is positive. 1.2 Under independence, calculate the expected number of patients with a family history of CVD, at Hospital 2. 1.3 A necessary condition to perform the hypothesis test is: The observed frequencies must be at least 5. The expected frequencies must be at least 5. The expected frequencies must be at least 30. The cell χ2-values must be at least z0.975=1.96. The row and column totals must be at least 3030. The cell χ2-values must be at least z0.95=1.645. The observed frequencies must be at least 30. The sample size must be at least 30. 1.4 Since the critical value is - we have sufficient evidence - the null hypothesis at α=0.01 level of…
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: The correlation between the fund returns is 0.12. a-1. What are the investment proportions in the minimu variance portfolio of the two risky funds? a-2 What are the expected value and standard deviation of the minimum variance portfolio rate of retrurn?
A U.S. Food Survey showed that Americans routinely eat beef in their diet. Suppose that in a study of 49 consumers in Illinois and 64 consumers in Texas the following results were obtained from two samples regarding average yearly beef consumption: Illinois Texas = 49 = 64 = 54.1lb = 60.4lb S1 = 7.0 S2 = 8.0 Formulate a hypothesis so that, if the null hypothesis is rejected, we can conclude that the average amount of beef eaten annually by consumers in Illinois is significantly less than that eaten by consumers in Texas.
Given that the σ_AB= σ_BA, then the variance-covariance matrix for a portfolio with 50 stocks requires the calculations of ____ variances and ____ covariances.
QUESTION IV [6]A courier service company has found that their delivery time of parcels to clients is approximatelynormally distributed with a mean delivery time of 30 minutes and a variance of 25 minutes (squared).Required:a) What is the probability that a randomly selected parcel will take more than 26 minutes todeliver? (2)b) What is the minimum delivery time (minutes) for the 2.5% of parcels with the longest time todeliver? (4
Suppose that a portfolio consists of two assets A and B whose returns are givenby RA = RM + uA and RB = 2RM + uB, where RM is the market return, which isuncertain, and where uA and uB are uncorrelated shocks with expected value of zeroand variance of 0.01. Suppose RM has expected value of 0.05 and a variance of 0.01. Calculate theexpected return and variance of both assets A and B.
Explain the nature of and the difficulties caused by each of the following: a. Heteroscedasticity b. Autocorrelated errors
1. What are time-series research designs, and how are they used to learn about changes in behavior over time? 2. What types of independent variables can be used in participant-variable research designs, and what conclusions can and cannot be drawn from their use? 3. What are single-participant research designs? When are they used, and what are their limitations?
In a Bernoulli process with success rate .4, if we consider the total number of successes X which happened on trials 7,9,15,16, 23, and if Y is the total number of successes on trials 15,23, 32,38, 43, then what is the covariance of X with Y?
13.4 #8 A research article on the effect of multitasking on grade performance describes an experiment in which 62 undergraduate business students were randomly assigned to one of two experimental groups. Students in one group were asked to listen to a lecture but were told that they were permitted to use cell phones to send text messages during the lecture. Students in the second group listened to the same lecture but were not permitted to send text messages. Afterwards, students in both groups took a quiz on material covered in the lecture. Data from this experiment are summarized in the accompanying table. ExperimentalGroup GroupSize Mean QuizScore StandardDeviation ofQuiz Scores Texting 31 42.56 9.24 No Texting 31 58.61 10.76 Use the given information to construct a 90% confidence interval for the difference in mean quiz score for the two treatments (texting allowed and texting not allowed). (Use ?no texting − ?texting. Use SALT. Round your answers to three…
1. A number of fast-food chains, after their success with offering their customers fresh salads, and in an effort to downplay the image of selling unhealthy food, began adding fresh fruit plates to their menus. At about the same time, and seemingly in direct conflict with this "healthy" strategy, several other fast-food chains began offering fat- and calorie-laden items to their menus. Compare these two widely different approaches, and predict the chances of each one's success. Name some other products that are popular, despite known health risks. 2. In wintry conditions, highway safety is improved by treating road surfaces with substances that will provide traction and/or melt snow and ice. Sand and rock salt are two widely used substances. Recently, a combination of beet juice and rock salt is being used in some parts of the country to treat road surfaces. Suppose you have been asked to provide a list of factors to consider for a switch from rock salt alone to using a combination of…

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