Consider the following table:Severe recessionMild recessionNormal growthBoomScenarioMean returnVarianceCovarianceProbability0.050.250.400.30%Stock FundRate of ReturnRequired:a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Meanreturn" value to 1 decimal place and "Variance" to 2 decimal places.)-30%-10815820%Bond FundRate of Return.-9815%8%-58b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sign. Donot round intermediate calculations. Round your answer to 2 decimal places.)

We have to find mean return and variance for the stock fund. Formula for the mean return for stock…

Answered: Consider the following table: Severe…

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.
A random sample of 10 business experts produced the following forecasts for real GDP growth in next period:2.2 2.8 3.0 2.5 2.4 2.6 2.5 2.4 2.7 2.6Use unbiased estimation procedures to find point estimates for the following parameters.a) Population mean.b) Population variance.c) Variance of the sample mean
Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Use a one-way ANOVA test to determine if there is a difference between the mean yields for the three asset classes, at the 0.05 level of significance. Assume the population distributions are approximately normal with equal population variances. Fund Yield by Asset Class SMALL CAP MID CAP LARGE CAP Small Cap Mid Cap Fund Yield (%) Fund Yield (%) Fund Yield (%) Explorer Value 2.21 Capital Value 0.95 Equity Income 3.16 Small-Cap Value Index Admiral 2.49 Mid-Cap Value Index Admiral 0.51 High Dividend Yield Index 3.59 Small-Cap Index Admiral Shares 2.03 Extended Market Index Admiral Shares 1.12 500 Index Admiral Shares 0.61 Strategic Small-Cap Equity 1.99 Mid-Cap Index Admiral Shares 1.47 Diversified Equity 1.32 Explorer 2.24 Mid-Cap Growth 1.39 FTSE Social Index 1.43 Small-Cap Growth Index…
which of the following individuals is likely to be excluded from a clinical trial? a-individual with other diseases besides the disease of interest b-an individual whose data is considered to be an outlier c-an individual of who is considered to be a minority d-an individual who will have difficulty complying trial protocols.
Consider the following information: Net working capital/total assets = 0.9 Retained earnings/total earnings = 0.15 EBIT/total assets = 1.1 MV of equity/BV of total liabilities = 2 Sales/total assets = 2.5 Required: Compute the Z-score. Based on the calculation, explain whether there is a likelihood of financial distress?
Suppose an individual is able to invest in shares of Sultan plc, in shares of Ahmed plc or in a portfolio made up from Sultan plc and Ahmed plc. Event ( weather for season) Probability of event Pi Returns on Sultan plc Rs Returns on Ahmed plc RA Warm 0.2 20 -10 Average 0.6 15 22 Wet 0.2 10 44 Required: a- Calculate expected return and standard deviation of company Sultan and Ahmed? b- What are the covariance and the correlation coefficient between returns on Sultan plc and returns on Ahmed plc?
Which of the following represents a possible alternative hypothesis for an analysis of variance (ANOVA)? Group of answer choices H0: µ1 = µ2 > µ3 H0: µ1 > µ2 > µ3 H0: µ1 = µ2 = µ3 H1: µ1 ≠ µ2 ≠ µ3
For a marketing class term project, Bob is investigating whether college seniors eat lessfrequently in fast-food chains than college freshmen. He asked 11 freshmen and 11 seniors tokeep track of how many times they ate in a fast-food restaurant during the month of October.Assuming equal variances, can you conclude that the mean is significantly smaller for collegeseniors at the 5 percent level of significance?Seniors Freshmen10 165 919 1615 145 1810 1018 198 1520 97 178 20
The r2represents the shared variance between a predictor and _______
Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 66%. A mutual-fund rating agency randomly selects 2222 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.474.47%. Is there sufficient evidence to conclude that the fund has moderate risk at the alpha equals 0.10α=0.10 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. What are the correct hypotheses for this test? The null hypothesis is H0: ▼ sigmaσ pp muμ ▼ less than< not equals≠ equals= greater than> ▼ 0.0447. 0.06. The alternative hypothesis is H1: ▼ muμ sigmaσ pp ▼ greater than> less than< not equals≠ equals= ▼ 0.06. 0.0447.
Suppose a mutual fund qualifies as having moderate risk if the standard deviation of its monthly rate of return is less than 66%. A mutual-fund rating agency randomly selects 2222 months and determines the rate of return for a certain fund. The standard deviation of the rate of return is computed to be 4.474.47%. Is there sufficient evidence to conclude that the fund has moderate risk at the alpha equals 0.10α=0.10 level of significance? A normal probability plot indicates that the monthly rates of return are normally distributed. What are the correct hypotheses for this test? The null hypothesis is H0: sigmaσ equals= 0.06. The alternative hypothesis is H1: sigmaσ less than< 0.06. Calculate the value of the test statistic. chi squaredχ2equals=??? (Round to three decimal places as needed.)
Consider the accompanying sample data on expense ratio (%) for large-cap growth mutual funds: 0.52 1.06 1.26 2.17 1.55 0.99 1.10 1.07 1.81 2.05 0.91 0.79 1.39 0.62 1.52 1.02 1.10 1.78 1.01 1.15 Is there compelling evidence for concluding that the population mean expense ratio exceeds 1%? Carry out a test of the relevant hypotheses using a significance level of 0.05.

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