Ay 5. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock Csplits two-for-one in the last period.ABсPo9050100Rate of return20100200200P19545110Rate of returnb. An equally weighted indexRequired:Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Roundanswers to 2 decimal places.)a. A market value-weighted index%21100200200%P295455522100200400

Answered: Image /qna-images/answer/1c677113-9ff4-4162-aba3-bb705afcc438.jpg

Answered: two-for-one in the last period. 20 P1…

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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Data on the 4000 largest mutual funds shows which funds provided a high 5-year return and a high 10-year return. Of the 4000 mutualfunds surveyed, 3000 funds had a high 5-year return, 2000 had a high 10-yearreturn, and 1500 had both a high 5-year return and a high 10-year return Given that a mutual fund had a high 5-year return, what is theprobability of a mutual fund having a high 10-year return?
Consider the following payoff matrix.
Use the following two tables to answer questions a. - e. a. Which of the above securities cannot lie on the efficient frontier? b. Why might you nonetheless include it in your portfolio? c. What is the expected return for a portfolio comprised of 40% security B and 60% security C? d. What is the standard deviation for a portfolio comprised of 40% security B and 60% security C? e. Suppose a risk-free asset with a yield of 3% exists, but only for lending. Would the highly risk-averse investor's optimal portfolio be likely to contain asset C? Why or why not?
The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list for 2021, based on their performance the preceding year. Symbol Company Price ($) as of 12/31/2020 Yield as of 12/31/2020 CVX Chevron 84.45 6.11% IBM IBM 125.88 5.18% DOW Dow 55.50 5.05% WBA Walgreens 39.88 4.69% VZ Verizon 58.75 4.27% MMM 3M 174.79 3.36% CSCO Cisco 44.39 3.24% MRK Merck 81.80 3.18% AMGN Amgen 229.92 3.06% KO Coca-Cola 54.84 2.99% You decide to make a small portfolio consisting of a collection of 6 of the top 10 Dogs of the Dow. (a) How many portfolios are possible? portfolios (b) How many of these portfolios contain DOW but not MMM? portfolios (c) How many of these portfolios contain at most one stock priced above $100? portfolios
The National Highway Association is studying the relationship between thenumberof bidders on a highway project and the winning (lowest) bid for the project. Ofparticular interest is whether the number of bidders increases or decreases the amountof the winning bid.
A brokerage firm has been tasked with investing $750,000 for a new client. The client has asked that the broker select promising stocks and bonds for investment, subject to the following guidelines: at least 10% in municipal bonds, at least 20% each in real estate and pharmaceutical stock, and at least 30% in a combination of energy and domestic automobile stocks with each accounting for at least 15%. The returns are as follows: Municipal = 6.5%, Domestic Automobile = 7.9%, Energy = 5.1%, Pharmaceuticals = 8.4% and Real Estate = 6.3%. a) Write a linear program complete with objective function and all constraints to Maximize the return. b) What is the optimal solution? Give values for all variables rounded to the nearest cent. c) How much annual income does the optimal solution generate?
Suppose in a tournament with only three players left, first place receives $6,000, second place receives $3,000, and third place receives $500. You have a 32% chance of winning first place, 30% chance of winning second place, and 38% chance of winning third place. a. What would be your expected winnings in this tournament? b. The tournament organizer gives you the option to continue playing or stop and split the total prize money, proportional to your current standings. If you currently have 700 of the 1800 chips currently in play, how much would you win if you stopped playing and split the winnings? c. Based on parts a and b, should you continue playing or stop and split the money? Why?
Suppose that you would like to create composite indexes from three stocks: stk1, stk2, stk3. Their stock prices (Pt) and total shares outstanding (Qt) from day 0 to day 1 are shown as follows: stk3 splits two-for-one in day 1. P0 Q0 P1 Q1 stk1 40 250 50 250 stk2 50 100 50 100 stk3 60 150 50 300 Which answer is the closest value to the rate of return on a price-weighted index of the three stocks? A. 20% B. 25% C. 30% D. 35%
In a staff meeting called to address the problem of returned cheques at the supermarkets where you areinterning as a financial analyst, the bank reports that 12 percent of all cheques are returned for insufficientfunds, and of those, in those 50 percent of cases, there was cash given back to the customer. overall ,10percent of customers ask for cash back at the end of their transaction with the store. For 1,000 customervisits, how many transactions will involve: (f) insufficient funds?(g) Cash back to the customer?(h) Both insufficient funds and cashback?(i) Either insufficient funds or cash back?
Mike, a lumber wholesaler, is considering the purchase of a (railroad) car- load of varied dimensional lumber. He calculates that the probabilities of reselling the load for $10,000, $9000, and for $8000 are 0.22, 0.33, and 0.45 respectively. In order to ensure an expected profit of $3000, how much can Mike pay for the load
What are the projected market shares for the two brands?
Acoording to scientists, the cockroach has had 300 million years to develop a resistance to destruction. In a study conducted by tesearchers, 4,000 reaches (the expected number in a rouch-infested house) were released in the tost kibchen. One week later, the kitchen was fumigated and 14,465 dead roaches were counted, a gain of 10,465 roaches for the 1 -week period. Assume that none of the original roaches died during the 1 -week period and that the standard deviation ofx, the number of roaches produced per roach in a 1 -weok period, is 1.3 . Use the number of roaches produced by the sample of 4,000 rosches to find a pos confidence interval for the mean number of roaches produced per wook for each rosch in a typical toach-infosted house. Find a99%confidence interval for the mean number of roaches prodused per week for each roach in a typical roach infested housen (Round to three decimal places as needed)

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