1. Diversty or be Sued! An investor with a stock portfolio worth several hundred thousand dollars sued his broker because lack of diversification in his portfolio led to poor performance (low returns) The table below gives the rates in percentages for the 39 months that the account was managed by the broker. An arbitration panel composed these returns with average of the Standard and Poor's stock index for the same period. Consider the 39 SRS monthly returns the broker would generate if he managed the account forever. Are these returns compatible with a population mean of .95%, the S&P 500 averaged over 35 years? The numbers are already in percentages. -8.36 1.62 -2.27 -2.93 -2.7 6.82 -2.93 -1.03 4.34 12.03 -9.14 -9.16 12.22 -2.64 -2.35 -1.22 -3.58 -5.11 5.04 6.13 -.8 -7.24 7.00 -1.44 -15.25 1.28 -1.01 -8.66 -.65 -1.25 -7.21 4.33 -.09 2.35 -10.27 7.34 -2.14 -1.41 -2.56 a. Test the investors' claim at the alpha level .05 significance level. (name the hypotheses, parameter, type of test and make sure the condition are met) b. Find and interpret the C.I. that coincide with the alpha level given. c. Describe the Type I and Type II Eror in words. Which error is the most serious in term of the person suing?

1. Diversty or be Sued! An investor with a stock portfolio worth several hundred thousand dollars sued his broker because lack of diversification in his portfolio led to poor performance (low returns) The table below gives the rates in percentages for the 39 months that the account was managed by the broker. An arbitration panel composed these returns with average of the Standard and Poor's stock index for the same period. Consider the 39 SRS monthly returns the broker would generate if he managed the account forever. Are these returns compatible with a population mean of .95%, the S&P 500 averaged over 35 years? The numbers are already in percentages. -8.36 1.62 -2.27 -2.93 -2.7 6.82 -2.93 -1.03 4.34 12.03 -9.14 -9.16 12.22 -2.64 -2.35 -1.22 -3.58 -5.11 5.04 6.13 -.8 -7.24 7.00 -1.44 -15.25 1.28 -1.01 -8.66 -.65 -1.25 -7.21 4.33 -.09 2.35 -10.27 7.34 -2.14 -1.41 -2.56 a. Test the investors' claim at the alpha level .05 significance level. (name the hypotheses, parameter, type of test and make sure the condition are met) b. Find and interpret the C.I. that coincide with the alpha level given. c. Describe the Type I and Type II Eror in words. Which error is the most serious in term of the person suing?

Name: 1. Diversty or be Sued! An investor with a stock portfolio worth seve
Uploaded: 2024-03-20T07:07:00.000Z
Channel: Bartleby
Description: 1. Diversty or be Sued! An investor with a stock portfolio worth several hundred thousand dollars suedhis broker because lack of diversification in his portfolio led to poor performance (low returns) Thetable below gives the rates in percentages for

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

The table below shows the year open and year closing price of the S&P 500 Stock Index from 2005 to 2020: Year Year Open Year Close Annual Percent Change 2005 $ 1,202.08 $ 1,248.29 2006 $ 1,268.08 $ 1,418.30 2007 $ 1,416.60 $ 1,468.36 2008 $ 1,447.16 $ 903.25 2009 $ 931.80 $ 1,115.10 2010 $ 1,132.99 $ 1,257.64 2011 $ 1,271.87 $ 1,257.60 2012 $ 1,277.06 $ 1,426.19 2013 $ 1,462.42 $ 1,848.36 2014 $ 1,831.98 $ 2,058.90 2015 $ 2,058.20 $ 2,043.94 2016 $ 2,012.66 $ 2,238.83 2017 $ 2,257.83 $ 2,673.61 2018 $ 2,695.81 $ 2,506.85 2019 $ 2,510.03 $ 3,230.78 2020 $ 3,257.85 $ 3,756.07 Find the annual percent change for the S&P 500 from 2005 to 2020; (Put those values in the table above) Compute the mean,…
Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490…
Table 1 displays data for money aggregates released by the Central Bank, Country A for the years 2019 - 2021. TABLE 1 2020 (Jan) $ Million 2021 (Jan) 2019 (Jan) $ Million Items $ Million Repurchase agreements Currency in circulation Demand deposits Fixed deposits with commercial banks, Islamic banks and central bank 50.8 105,091.5 344,140.6 0.0 53.5 101,254.1 326.976.9 1,130,449.7 123,007.5 412,203.8 1,158,924.1 1,120,366.7 Foreign currency deposits with commercial banks, Islamic banks and central bank Deposits placed with other banking institutions 145,887.1 155,502.5 159,817.5 9,698.1 10,556.70 2,558.7 Saving deposits with commercial banks Negotiable instruments of deposits 162,067.8 172,797.0 218,820.0 12,375.3 14,366.6 8,824.5 a) Based on the data in Table 1, answer the following questions: i) What is the value of quasi money in 2020? ii) Calculate the values of M2 for 2021
Illustration 56. Assuming that there is no trend, deseasonalise the following data relating to the cash balances of a firm for the vear , 1998 : (use multiplicative model Month Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec Balance (in '000 Rs.) : 150 160 196 | 256 274 204 | 208 200 204 164 | 146 238 Seasonal Index : 75 80 98 128 | 137 119 102 104 100 102 82 73
Data for a particular country on consumer debt (as a percentage of personal income) and mortgage debt (also as a percentage of personal income) for the 10 years from 2006 to 2015 are shown in the following table. Consumer Debt r = 6.72 7.07 6.97 6.69 6.19 5.58 5.15 4.95 4.74 4.59 Mortgage Debt 5.96 5.97 5.88 5.60 5.17 5.06 4.96 5.22 5.30 5.45 (a) What is the value of the correlation coefficient for this data set? (Round your answer to four decimal places.)
8. Magazine Sales The following table shows the income, measured in thousands of dollars, from sales of a certain magazine at the start of the given year.
One year ago, Big Deal Closed-End Fund had a NAV of $10.28and was selling at a(n) 16% discount. Today, its NAV is $11.58 and it is priced at a(n) 4% premium. During the year, Big Deal paid dividends of $0.33 and had a capital gains distribution of $0.91. On the basis of the above information, calculate each of the following. a. Big Deal's NAV-based holding period return for the year. b. Big Deal's market-based holding period return for the year. Did the market premium/discount hurt or add value to the investor's return? Explain. c. Repeat the market-based holding period return calculation, except this time assume the fund started the year at a(n)16% premium and ended it at a(n) 4% discount.(Assume the beginning and ending NAVs remain at $10.28 and $11.58, respectively.) Is there any change in this measure of return? Why?
The following data were taken from Miller Company's balance sheet: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total stockholders' equity 75,000 60,000 a. Compute the ratio of liabilities to stockholders' equity. Round your answers to one decimal place. Liabilities toStockholders' Equity 12/31/Year 2: fill in the blank 1 12/31/Year 1: fill in the blank 2 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?
21. The income statement for Otto Construction Company appear below: Net sales (all credit sales) $180000 Cost of goods sold 100000 Gross margin 80000 Operating expenses 30000 Interest expense 12000 Income before taxes 38000 Income tax 9500 Net income $28500 Average total assets total $240000. Otto’s income tax rate is 25%.What is the gross margin percentage? (a) 12.5% (b) 15.8% (c) 33.3% (d) 44.4%
Example 14: The net profit (after taxes) of a firm is 75,000 and its preference dividend is 710,000. Calculara dividend coverage ratio.