Within a health care network I would give preference to a variable expense department. This is because a variable budget gives the financial manager an opportunity to evaluate departments’ productivity, efficiency and performance. Within a variable budget one can use this information to identify costs and revenues in order to determine a department’s financial operating performance. The positive result of using a variable expense department is the ability it gives to improve efficiency and productivity with minimal government regulation and control. Managing a variable expense department can result in the ability to adapt quickly. Along with knowing the health care organizations product line costs, and the competitive and profitable price of services. The negative side of a variable expense department is that it must be managed daily. A fixed expense department can be successful only if the expenses are established. Fixed expenses can be positive, because they appropriate funds for specific departments. I would consider healthcare reform to be the biggest challenge within healthcare financial planning and budgeting. Medicare and Medicaid reimbursement have the greatest affect on hospital budgeting. This creates a challenge for a health care operations manager, because Medicare and Medicaid reimbursement health care reform has led to lower revenues. It is a challenge for a health care operations manager to maintain a high quality service level while receiving lower revenues. This causes tough decisions to be made in financial planning and the health care system budget. This includes cutting department budgets and coming up with expense reduction plans. Strategic budgeting can be used to address this challenge. Health care operations managers need to establish targets within their budgets. The key is to develop a budget that is able to support the overall plan of the health care organization. A health care operations manager should look at each department and...

...Part B: Week 3 or 4
Exercise 5.1. Now what is the expected value and variance of Y=5X-3 for each distribution? (Hint: Use the ‘Summary of the Laws of Expected Value and Variance’ slide in the lecture notes.)
Exercise 5.3. Now assume the manager receives a daily salary of $200 plus $85 per car sold. What is the expected value and standard deviation of her salary? (Hint: Use the ‘Summary of the Laws of Expected Value and Variance’ slide in the lecture...

...Variance Analysis: Year 6
In this part of the report, we analyze the variances between our pro-forma statements we had projected and the actual results we received from the BPG game. Looking at the variances, it can be seen that most of the numbers compared are not too far apart from each other when comparing our actual numbers to the projected analysis. This is due to the fact our forecast was successful. It was however not 100%...

...Assignment 7: Mean-Variance Portfolio Theory
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Top of Form
1 .
Consider, as in Lecture 7.1, a portfolio of two risky assets, with expected returns rˉ1,rˉ2, variances σ21,σ22 and covariance σ1,2. No other assets are available. You have to allocate $1 mln of investment in the portfolio of the two assets in order to minimize total portfolio variance. What is the optimal amount of investment in asset...

...Case on Mean-Variance Frontiers
1. Ignoring the risk-free asset, draw the frontier in mean-std space.
We solve the problem by Matlab:
clear; clc;
% input data
temp = xlsread('30_Industry_Portfolios');
ret = temp(:,2:end)/100; （this step is to get all the returns from the file）
rf = 0.01/100; (The risk free rate is rf =0.01%= 0.0001 per month.)
% compute moments
er = (mean(ret))'; (the (30.1)vector of returns on the 30 industries)
V = cov(ret); (the covariance...

...Mean-Variance Analysis
Mean-variance portfolio theory is based on the idea that the value of investment opportunities can be meaningfully measured in terms of mean return and variance of return. Markowitz called this approach to portfolio formation mean-variance analysis. Mean-variance analysis is based on the following assumptions:
1. All investors are risk averse; they prefer less risk to more for the same level of...

...father of “Modern Portfolio theory”, developed the mean-variance analysis, which focuses on creating portfolios of assets that minimizes the variance of returns i.e. risk, given a level of desired return, or maximizes the returns given a level of risk tolerance. This theory aids the process of portfolio construction by providing a quantitative take on it. It integrates the field of quantitative analysis with portfolio management. Mean variance...

...Sub: Finance Question:
Calculation of variance of portfolio.
Topic: Portfolio management
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Suppose there are three risky assets, A, B and C with the following expected returns, standard deviations of returns and correlation coefficients. E (rA)= 4% E (rB)=5%...

...Statistics Midterm paper
1. : Identify the implied population in the information here.
Government agencies carefully monitor water quality and its effect on wetlands (Reference: Environment Protection Agency Wetland Report EPA 832-R-93-005). Of particular concern is the concentration of nitrogen in water draining from fertilized lands. Too much nitrogen can kill fish and wildlife. Twenty-eight samples of water were taken at random from a lake. The nitrogen concentration...