Use excel form. Consider the following information given toanswer the series of questions below todetermine the preferred investment usingthe measurement for a stand alone risk.Demand for theCompany's Products Demand occurringProbability of thisRate of Return on stockif this Demand occursStock AStock BStock CHighly Favorable0.192%85%94%Favorable0.349%38%63%Normal0.422%23%21%Unfavorable0.2-18%-17%-19%What is the standard deviation for StockA? Use a whole number in percent form,no space, no commas, no signs. *

Given Information: Consider the data for stock A. Demand for the company's product Probability of…

Answered: Consider the following information…

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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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.
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.
Consider the following data:Monthly Profit of a Gym: Month & Profit: Jan-12: 5700 Feb-12: 5453 March-12: 5034 April-12: 4717 May-12: 5185 June-12: 5638 July-12: 6519 Aug-12: 6182 Sept-12: 5913 What are the MAD, MSE and MAPE scores for the three-period weighted moving average forecast? Round any intermediate calculations, if necessary, to no less than six decimal places, and round your final answer to one decimal place. MAD: MSE: MAPE as %: link to excel sheet for forumla to assist: http://www.livebinders.com/play/play?id=2368073
4. Consider the following data. Period 1 rate of return -6.0. Period 2 rate of return -8.0. Period 3 rate of return -4.0. Period 4 rate of return 2.0. Period 5 rate of return 5.4. What is the mean growth rate over these five periods?
Discuss briefly the following measures of Central Tendency MODE
As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Prepare a managerial report that addresses the…
Solve the following Make in-house or outsource decision model using Monte Carlo Simulation of Data Table. The production level has to be set equal to demand. Demand is assumed to follow a normal distribution of mean = 1200 and a standard deviation of 175. Make 1000 trials to simulate demand to find out the approximate probability to meet the demand through outsourcing,DataManufactured in-houseFixed cost$50,000Unit variable cost$135 Purchased from supplierUnit cost$180 Production volume Model Total manufacturing costTotal purchased cost Cost differenceDecision (Production/ Outsourcing)
4. Consider the following data. Period Rate of Return % 1 26.0 2 28.0 3 24.0 4 2.0 5 5.4 Rate of Return (%) 26.0 28.0 24.0 2.0 5.4 What is the mean growth rate over these five periods?
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
Consider the number of days to maturity of 10 short-term investments below: 85 77 88 78 65 78 57 81 36 90 (i) Make a stem-and-leaf plot for the days-to-maturity data. (2) (ii) Hence, or otherwise, compute the interquartile range of the data. (3) (iii) Are there any outliers in the data.
D & R A1 10 - 3 Question 10. Minimum Variance Commodity Hedge Choc Full of Good Inc., a producer of powdered hot chocolate, has just received a large order that will require the purchase of 800 metric tons of cocoa in 3 months. The current spot price of cocoa is US $3,055 per metric ton. The standard deviation of the change in spot cocoa price is 0.2. Mr. Dulce, the CFO of Choc Full, is considering a minimum-variance hedge of this future cocoa purchase using the three-month cocoa futures contract. The contract size is 10 metric tons. The standard deviation of the change in cocoa futures price is 0.25. The covariance between the change in the spot and futures cocoa price is 0.035. The annually compounded interest rate faced by the company is 5%, the three-month storage cost is $2.5 per metric ton, and the convenience yield is $0.5 per metric ton. Compute the minimum-variance hedge ratio.
Suppose that many stocks are traded in the market and that it is possible to borrow at the risk - free rate, rf. The characteristics of two of the stocks are as follows: Stock Expected Return Standard Deviation A 8% 55% B4% 45% Correlation=1 Required: a. Calculate the expected rate of return on this risk - free portfolio? (Hint: Can a particular stock portfolio be formed to create a "synthetic" risk - free asset?) (Round your answer to 2 decimal places.) b. Could the equilibrium rf be greater than rate of return? multiple choice Yes No

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