Please answer letter b and c Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM PrimeHoldings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, afinancial analyst who works at JD Morguens, suggests partitioning his wealth by investing70% of it in the stock that has a higher average daily rate of return, and the remaining 30%be invested in the other asset. Mr. Oliva has the following data points of the historical pricesfor day x= 0, 1,2, ..., 8, HP,, of SMPH and JFC:SMPH| JFC36.4245.2Day x35.5245.836249.235.95249435.924536.85244.637.524837.05245.436.6243.89.36.9245a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x = 1,2, ..,9 usingthe following formula:HP, – HP,-1R(x) :HPx-1Generate a table showing the daliy rate of return for both assets.b. It is known that the average daily rate of return can be calculated by solving thefollowing definite integral:R(x)dx,where a is the maximum number of days you observed the historical prices. UseRomberg integration to approximate the average daily rate of return separately for bothassets as accurately as possible.c. To which stock should the 70% of wealth be allocated?

To solve parts (b) and (c), it is essential to sole part (a). Create a table of Rx values for SMPH.…

Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM Prime Holdings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, a financial analyst who works at JD Morguens, suggests partitioning his wealth by investing 70% of it in the stock that has a higher average daily rate of return, and the remaining 30% be invested in the other asset. Mr. Oliva has the following data points of the historical prices for day x=0,1,2,..., 8, HP, of SMPH and JFC: Dayx 0 1 2 3 4 5 6 7 8 9 SMPH 36.4 35.5 36 35.95 35.9 36.85 JFC 245.2 245.8 249.2 249 245 244.6 37.5 248 37.05 245.4 36.6 243.8 36.9 245 a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x=1,2,..., 9 using the following formula: R(x) = HP-HP-1 HP-1 Generate a table showing the daliy rate of return for both assets. b. It is known that the average daily rate of return can be calculated by solving the following definite integral: J 12 R(x)dx, where a is the maximum number of days you observed the historical prices. Use Romberg integration to approximate the average daily rate of return separately for both assets as accurately as possible. c. To which stock should the 70% of wealth be allocated?

Mr. Yamcie Oliva considers investing his PHP 100,000 wealth into two assets: SM Prime Holdings Inc. (SMPH) and Jollibee Foods Corp. His friend, Ms. Julie-Anne Ilquin, a financial analyst who works at JD Morguens, suggests partitioning his wealth by investing 70% of it in the stock that has a higher average daily rate of return, and the remaining 30% be invested in the other asset. Mr. Oliva has the following data points of the historical prices for day x=0,1,2,..., 8, HP, of SMPH and JFC: Dayx 0 1 2 3 4 5 6 7 8 9 SMPH 36.4 35.5 36 35.95 35.9 36.85 JFC 245.2 245.8 249.2 249 245 244.6 37.5 248 37.05 245.4 36.6 243.8 36.9 245 a. Mr. Oliva wishes to calculate the daily rate of return R(x) for days x=1,2,..., 9 using the following formula: R(x) = HP-HP-1 HP-1 Generate a table showing the daliy rate of return for both assets. b. It is known that the average daily rate of return can be calculated by solving the following definite integral: J 12 R(x)dx, where a is the maximum number of days you observed the historical prices. Use Romberg integration to approximate the average daily rate of return separately for both assets as accurately as possible. c. To which stock should the 70% of wealth be allocated?

Algebra: Structure And Method, Book 1

(REV)00th Edition

ISBN:9780395977224

Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole

Chapter2: Working With Real Numbers

Section2.3: Rules For Addition

Problem 8P

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