1. Assume that a business owner has the following loss distribution: Loss Probability 500,000 0.05 100,000 0.10 0.85 1. What is the standard deviation of the above loss distribution? 2. An insurance policy insures the above loss distribution with a deductible of $50,000. What is the loading of the insurance policy?
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- You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.30 a copy. You sell a copy of the San Pedro Times for $1.10. Daily demand is distributed normally with mean = 265 and standard deviation = 53. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.a. How many copies of the San Pedro Times should you buy each morning? (Use Excel's NORM.S.INV() function to find the z value. Round your z value to 2 decimal places and final answer to the nearest whole number.)b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.)Suppose that the value of a stock varies each day from $8.82 to $29.17 with a uniform distribution. Find the upper quartile; 25% of all days the stock is above what value? (Enter your answer to the nearest cent.) see attachment.Pax World Balanced is a highly respected, socially responsible mutual fund of stocks and bonds. Vanguard Balanced Index is another highly regarded fund that represents the entire U.S. stock and bond market (an index fund). The mean and standard deviation of annualized percent returns are shown below. The annualized mean and standard deviation are for a recent 10-years period.†. If x represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view, which fund appears to be better? Explain. A. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Pax fund appears to be better because the CV is smaller. B. Since the CV is s/s2 we can say that the CV represents the risk per unit of return; the Vanguard fund appears to be better because the CV is smaller. C. Since the CV is s/x we can say that the CV represents the risk per unit of return; the Pax fund…
- One year consumers spent an average of $22 on a meal at a resturant. Assume that the amount spent on a resturant meal is normally distributed and that the standard deviation is $3. Complete parts (a) through (c) below. Between what two values will the middle 95% of the amounts of cash spent fall?Observe the mean, the standard deviation, and the CV of the annual rate of return of the portfolio. Apple Historical Annual Stock Price Data Year Average Stock Price Year Open Year High Year Low Year Close Annual % Change 2021 135.6974 129.4100 156.6900 116.3600 148.7600 12.11% 2020 95.3468 75.0875 136.6900 56.0925 132.6900 80.75% 2019 52.0640 39.4800 73.4125 35.5475 73.4125 86.16% 2018 47.2634 43.0650 58.0175 36.7075 39.4350 -6.79% 2017 37.6378 29.0375 44.1050 29.0050 42.3075 46.11% 2016 26.1510 26.3375 29.5625 22.5850 28.9550 10.03% 2015 30.0096 27.3325 33.2500 25.7800 26.3150 -4.64% 2014 23.0661 19.7546 29.7500 17.8494 27.5950 37.72% 2013 16.8798 19.6082 20.3604 13.9475 20.0364 5.42% 2012 20.5732 14.6868 25.0750 14.6868 19.0062 31.40% 2011 13.0002 11.7704 15.0800 11.2614…Suppose that the value of a stock varies each day from $12.82 to $19.17 with a uniform distribution. Find the third quartile, i.e., 75% of all days the stock is below what value? Round your answer to the nearest cent.
- Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns? 11.27 percent 13.05 percent 13.59 percent 15.08 percent 14.40 percentA stock has an annual expected return of 15% and a standard deviation of 50%. An investor in this stock can expect to lose 10% of their investment or more about once every _____ year(s).a. 5 b. 3 c. 4 d. 2 e. 1. Need typed answer only .Please give answer within 45 minutesBelow are percentages for annual sales growth and net sales attributed to loyalty card usage at 74 Noodles & Company restaurants. Annual Sales Growth (px;) and Loyalty Card Usage (px; of Net Sales)(n = 74 restaurants) Store Growth% Loyalty% Store Growth% Loyalty% 1 -7.8 0.7 38 7.3 1.5 2 -6.9 2.5 39 7.4 1.7 3 -5.1 1.6 40 7.7 2.3 4 -4.7 1.4 41 8.0 2.0 5 -3.8 2.5 42 8.0 1.6 6 -1.7 1.5 43 8.3 1.9 7 -1.7 2.6 44 8.4 2.0 8 -1.6 2.4 45 8.6 2.2 9 -1.1 2.2 46 8.6 1.6 10 -1.0 1.9 47 8.7 0.9 11 0.4 1.2 48 8.9 1.7 12 0.6 0.5 49 9.4 1.6 13 0.6 2.1 50 9.5 1.3 14 1.0 1.3 51 9.5 2.1 15 1.3 2.0 52 10.5…