Markov’s Trilemma First we try to find the optimal portfolio for our original set up. Weighting Asset GM -0.8% MRK 34.8% GE 66.0% 100.0% Risk-free rate 7% Expected Return 41.3% Expected standard deviation 21.4% Sharpe Ratio 1.60 1. Then we try the following actions and try to understand their consequences: a. Suppose that GM has decided to become a diversified conglomerate‚ much like GE‚ so that its correlation with GE will be 0.80 instead of 0.26. Weighting
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CLICK TO DOWNLOAD MAT 540 Midterm Exam 1. Deterministic techniques assume that no uncertainty exists in model parameters. 2. A continuous random variable may assume only integer values within a given interval. 3. An inspector correctly identifies defective products 90% of the time. For the next 10 products‚ the probability that he makes fewer than 2 incorrect inspections is 0.736. 4. A decision tree is a diagram consisting of circles decision nodes‚ square probability nodes‚ and
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LEAD 6341 Research Methods and Statistics Midterm Exam Part II: Conceptual Problems (Open Book) Spring‚ 2013 1) Very briefly discuss the history of ethical problems in research in the US. Describe how current research policies and practices reduce the likelihood of ethical problems arising from research today. The Tuskegee study is an example of ethical problem in research in the US. The black subjects were promised medical care‚ meals‚ and burial insurance for their participation in
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SIG Interview Questions 1. Torpedo question: 2 torpedoes‚ each with 1/3 probability of hitting/ sinking a ship 2. I have 20% chance to have cavity gene. If I do have the gene‚ there is 51% chance that I will have at least one cavity over 1 year. If I don’t have the gene‚ there is 19% chance that I will have at least one cavity over 1 year. Given that I have a cavity in 6 months‚ what’s the probability that I have at least a cavity over 1 year? 3. What is the probability of 5 people with different
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Examining Stock Returns for Normal Distributions July11‚ 2012 Part A. A1 (CRSP 2000-2008) | VW Daily | EW Daily | VW Monthly | EW Monthly | Mean | 0.00% | 0.05% | -0.12% | 0.50% | σ | 1.35% | 1.12% | 4.66% | 6.14% | Table A1 shows return means and standard deviations for the CRSP market portfolio from 2000-2008. In comparing daily vs monthly returns in both cases‚ equally weighted (EW) and value weighted (VW)‚ Table A1 shows the mean and standard deviation are
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1.if selecting samples of size n = 10 from a population with a known mean and standard deviation what requirement‚ if any must be satisfied in order to assume that the distribution of the sample means is a normal distribution The population must have a normal distribution. 2. find the area of the shaded region. The graph depicts that standard normal distribution with mean 0 and standard deviation 1. M: 0 δ: 1 Z: 1.13= .8708 2ND DIST. #2 LOWER: -999999 UPPER: 1.13 U: 0 δ: 1 =.8707618393 3. Shaded
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Calculate the variability (standard deviation) of the stock returns of California REIT and Brown Group during the 2 years. How variable are they compared with Vanguard Index 500 Trust? Which stock appears to be the riskiest? Vanguard Index 500 Trust California REIT Brown Group STDEV 4.61% 9.23% 8.17% Based on the above‚ the riskiest stock would appear to be California REIT. Suppose Beta’s position has been 99% of equity funds invested in the index fund‚ and 1% in the individual stock
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Instructions Copy the file name Motor Claims from the shared folder and paste it on a new work sheet. Carry out the following Analysis on the given data. 1. Frequency distribution analysis for Motor Claims with Veh Group and also with Driver’s Age. 2. Calculate Average‚ Standard Deviation‚ Minimum and Maximum values of Claims. 3. Perform Descriptive Analysis using the tool: Data Analysis for Claims Data. 4. Plot a claims distribution with claim size intervals of 10000‚ 20000‚ 30000‚ 50000
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Unit 6. Normal Distribution Solution to problems Statistics I. International Group Departamento de Economa Aplicada Universitat de Valncia May 20‚ 2010 Problem 35 Random variable X : weekly ticket sales (units) of a museum. X ∼ N(1000‚ 180) Find the probability of weekly sales exceeding 850 tickets. Find the probability of the interval 1000 to 1200 Take 5 weeks at random. Find the probability of weekly sales not exceeding 850 tickets in more than two weeks Ticket price is 4.5 Euros
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TO: Emily Whitfield FROM: THU NGUYEN DATE: 02-21-12 SUBJECT: Case Problem #2 Problem Statement Don Capita‚ the owner of Carpita Bottling Company in Lakeland‚ Wisconsin‚ received a phone call from the J.R. Summers grocery manager regarding the recently shipment. She requested Carpita Company to replace the entire of shipment because there were several bottles that weren’t qualified the fill level of 16-ounces. Therefore‚ Don decided to take a sample of 64 bottles of beer from the store to measure
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