the risks inherent in stock returns in a portfolio of shares using the concepts of standard deviation and diversification

Q: Explain Distribution and standard errors when n is large?

A: An average standard deviation of a statistical sample population is a standard error (SE) of a…

Q: Find the expected value for the monthly income

A: Expected value of a Random Variable is given by E(X) = ∑xxP(x)

Q: Suppose that the annual rate of return for a common biotechnology stock is pormally distributed with…

A: Given : Population Mean = μ = 4 Standard Deviation = σ = 6

Q: A company that sells annuities must base the annual payout on the probability distribution of life…

A: A z-score represents the position of a data point in terms of its distance from the mean when…

Q: The time between arrivals of vehicles at a particular intersection follows an exponentialprobability…

A: From provided information, the time between arrivals of vehicles at particular intersection follows…

Q: What is meant by the term Cumulative Distribution Function? And how would you apply it (Example) to…

A: The cumulative distribution function of a random variable X is the probability that the random X is…

Q: Suppose that losses follow an exponential distribution with mean 500. If a deductible is set at 300,…

A: From the given information, it is clear that,  X follows exponential distribution with mean μ=500.…

Q: What is the probability that exactly 9 years will elapse between occurrences of a 10 year flood…

A:

Q: What is a marginal probability function

A: Probability distribution

Q: The waiting time at a grocery checkout has an exponential distribution with mean of 9 minutes. What…

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Q: Suppose that the annual rate of return for a common biotechnology stock is normally distributed with…

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Q: Define Fundamentals of Asymptotic Distribution Theory?

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Q: This figure presents the percentage deviation from the 60:40 ratio in the market values of equity of…

A: Given that,

Q: expected

A: Here given,  An Insurance company sells a 1-year term life insurance policy to an 76-year-old woman.…

Q: Service times for customers at a library information desk can be modeled by an exponential…

A: The probability density function for a exponential distribution for a random variable X is given by,…

Q: . What is his expected profit?

A:

Q: What is the median of a continuous random variable? What is the median of an exponential…

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Q: - What is his expected profit?

A:

Q: Assume that family incomes are normally distributed with mean 30,000 and standard deviation of…

A: Given : Assume that family incomes are normally dist. with  Mean (μ) = 30000 S.D (σ) = 10000 Poverty…

Q: The stock returns of 500 stocks are normally distributed with a mean of 10.5% and a standard…

A: Z-score: The z-score value is a numerical measurement that describes a value of the relationship to…

Q: The real income suddenly drops by one dollar. What is the expected effect on monthly consumption?

A:

Q: suppose the average waiting time for a customers phone call to be answered by a company…

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Q: You create Bolinger bands around a stock based on plus or minus 2 standard deviations. What is the…

A: About 95% of the data values lies within 2 standard deviation limits ±2σ. That is, 5% of the data…

Q: a. Plot the frequency chart of monthly excess stock returns, and compute mean, volatility (i.e.,…

A: We have, Mean=0.0013146sd=0.0862379skewness=0.2246Kurtosis=5.49999 Skewness measures the lack of…

Q: How standard normal cumulative distribution function is used by Probit regression?

A: Probit regression, also called a probit model, is used for modelling variables with dichotomous or…

Q: Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the…

A:

Q: As the value of p increases, the mean of the binomial distribution increases .

A: From the provided information, The distribution is binomial with probability p. X~B (n, p)

Q: Explain poisson distribution with Examples?

A: The Poisson distribution is a type of discrete probability distribution which is defined over number…

Q: Suppose that the annual rate of return for a common biotechnology stock is normally distributed with…

A: Given Mean=4.5 Standard deviations 4

Q: Suppose the rate of return for a particular stock during the past two years was 10% and - 45%.…

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Q: Is this a binomial distribution? Explain.

A: Here use basic rule of binomial

Q: d to calc

A: Rate of Return for an investment A variance of stock measures the difference between stock returns…

Q: Regarding the estimate of the conditional standard deviation,σ,, which of the three sums of squares…

A: Justification:Estimate of the conditional standard deviation:

Q: Compute the mean return, variance and standard deviation of returns, and the coefficient of…

A: Descriptive statistics is used to describe or summarize data in ways that are meaningful and useful.

Q: How to find Cumulative frequency distribution?

A: A cumulative frequency distribution is the sum of the class and all classes below it in a frequency…

Q: explain the difference between a distribution function, moment generating function and probability…

A: The distribution function: A function that represents the discrete probability distribution is…

Q: Calculate the expected count for a junior who has a 2.0 to 3.0 GPA.

A: The expected count is defined as E = (Column total × Row total)/Total

Q: Along with interest rates, life expectancy is a component in pricing financial annuities. Suppose…

A: given randomly sample n=20  that last year average life expectancy was 77 years for your annuity…

Q: Find the mean deviation of Poisson distribution.

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Q: - Find the mode of binomial distribution.

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Q: Jack invests in a mutual fund with annual returns that follow a Normal model with mean14% and…

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Q: Regarding the estimate of the conditional standard deviation,s,, which of the three sums of squares…

A: Estimate of the conditional standard deviation:

Q: 5. The annual return on a stock is normally distributed with a mean of 20% and standard deviation of…

A: According our policy we can answer only first  part for remaining please repost the question.

Q: Construct a binomial distribution table for the number of defective computer chips in a lot of 4 if…

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Q: The average return for large-cap domestic stock funds over certain three years was 7.2%. Assume the…

A: Denote X as the average return for the large cap domestic stock over certain three years. It is…

Q: Describe the procedures on how to use the normal probability distribution?

A: The normal probability distribution is basically used when there is a need to find the probability…

Q: Suppose that the annual rate of return for a common biotechnology stock is normally distributed with…

A: