32. An analyst calculated the excess kurtosis of information, we conclude that the distribution of returns is: A. normally distributed. B. thin-tailed compared to the normal distribution. C. fat-tailed compared to the normal distribution. From

Q: Which of the following is FALSE regarding variances? O A favorable variance, when it occurred, are…

A: The method of costing used to determine deviations is referred to as standard costing. The standard…

Q: Find expected return and variance for(a), according to SIM, and the expected return according to…

A: The single-index model is used to determine the risk and return on security with respect to the…

Q: Consider the following set of dependent and independent variables. Complete parts a through c below.…

A: Step 1: df = n - 1 - No. of predictors   (Predictors: x1 and x2: 2 variables) df = 8 - 1 - 2 df = 5…

Q: Begin by selecting the formula to compute the current ratio.   Current ratio formula =…

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: Monte Carlo methods is more advantageous with more uncertainties of data in the financial market. It…

A: Monte Carlo simulations are used to estimate the likelihood of various outcomes in a process that…

Q: q4-  What can be used to analyse the relationship between two categorical or qualitative variables?…

A: A scatter plot is a graphical representation that uses dots to represent values for two different…

Q: the range of values that correlation coefficients can take is only -1 to 1. True or false

A: The correlation coefficient is a statistical measure of the strength of a linear relationship…

Q: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: In a regression analysis, the variable that is being predicted is the a. Intervening variable O b.…

A: The variable that is attempted to clarify or anticipate is known as the the response variable,…

Q: tement (M)?   a. M is based on the sample results.   b.   the larger M is, the lower the…

A: Tolerable Error Rate (TER) is the maximum acceptable rate of error sample results. TER = EPER + An…

Q: A random variable that can assume only a finite number of values is referred to as a(n)

A: The correct answer is: (D) Discrete random variable  Yes, this is true. A Discrete random variable…

Q: Complete the following amortization chart by using Table 15.1. (Round your answers to the nearest…

A: given selling price = 91000 rate = 6% time = 30 years

Q: Expected return and standard deviation. Use the following information to answer the questions: a.…

A: Expected return, variance and standard deviation of each asset is calculated in excel

Q: Consider the following set of dependent and independent variables. Complete parts a through c below.…

A: Step 1:  Step 2: y^​=14.9882+0.9035x1​+(−0.4925x2​)

Q: Consider the generalised linear regression model: y = Xẞ + e, with E[e] = 0 and E[ee] = 022. Let the…

A: The objective of the question is to identify the incorrect statements about the OLS and GLS…

Q: Which of the following statements are true? A. The lower the M-squared the better. B. The higher…

A: higher the sharpe ratio , the better the portfolio is. higher the treynor ratio, the better the…

Q: Which one of the following statements is TRUE? O a. If the distribution of returns for an asset has…

A: The realm of finance and investment is underpinned by an array of mathematical and statistical…

Q: The value of a correlation is reported to be r = 0.25. How is this interpreted?

A: Correlation: In the financial and investing sectors, correlation is a statistic that indicates the…

Q: q12-  In the distribution of a variable, if the mean is much smaller than the median, the data…

A: The mean, mode and median are the three categories which can be used to figure out if you have a…

Q: During the control function, the measurements taken of the performance must be accurate enough to…

A: In a corporation, control seems to be a major goal-oriented function of management. This is the…

Q: Which one of the following statements regarding the coefficient of determination is NOT correct?

A: Coefficient of correlation is the measure which is used by the management of the company so that it…

Q: What is the standard deviation of a random variable q with the following probability distribution?…

A: Standard deviation is a statistical measure that indicates how much the data in a set deviates or…

Q: Find expected return and variance for(a), according to SIM, and the expected return according to…

A: The single-index model is used to determine the risk and return on security with respect to the…

Q: 17. The purpose of computing a minimum variance hedge ratio is to minimize the variance of the: (a)…

A: Minimum Variance Hedge Ratio is also known as optimal  hedge ratio. The minimum variance hedge ratio…

Q: Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and…

A: Computation of expected return and variance is enumerated as below:

Q: 2. Given: Asset 1. E(R): = 3 Var(R₂) = 1.5 Asset 2. E(R) = 5 w1 .9 w2 0 .1 E(Rp) 3 3.2 24 Var(Rp)…

A: Efficient frontier It is a set of portfolios that provide the highest expected return for the given…

Q: xplain the shape of the Markowitz (that is, mean-variance) efficient frontier, specifically what…

A: Markowitz (that is, mean-variance) efficient frontier-It is also known as mean - variance model and…

Q: Exercise 14-11 Algo The following table lists the National Basketball Association's leading scorers,…

A: answers   PPG (X) MPG (Y) X * Y X2 Y2   30.4 37.8 1149.12 924.16 1428.84   30.4 36.8…

Q: Consider the generalised linear regression model: y = Xẞ + e, with E[e] = 0 and E[ee] = 022. Let the…

A: The question is asking us to evaluate the properties of the Ordinary Least Squares (OLS) and…

Q: Define Covariance?

A: Portfolio management is a dynamic decision making process about investment. It is a continuous…

Q: (iv) For testing hypotheses: Ho: Bi = 0 H₁: B 0, for i = 1, 2, 3, 4. find t-statistics. Then on…

A: STEPS:  1. Formulate Hypotheses:Set the null hypothesis stating that each regression coefficient is…

Q: 1. What percent of the area under the standard normal curve is within one standard deviation of…

A: The objective of the question is to find out the percentage of the area under the standard normal…

Q: An unbiased estimator is one that: A) has the most observations B is on target on average.

A: It is the estimator where the expected value of a given parameter is equal to the true value of the…

Q: O An F test O Extrapolation is used to test the hypothesis that the values of the regression…

A: The f-test basically compares your model to one with zero predictor variables (the intercept alone…

Q: Is the equation for volatility not Σ P ( x - x̄ )^2 ? And I am finding online that covariance is…

A: Formula for Variance = Σ P ( x - x̄ )^2

Q: Which of the following statements about Least Squares Regression is not true ?   Least -squares…

A: The objective of the question is to identify the incorrect statement about Least Squares Regression…

Q: A measure, such as the mean, based on sample data is called a Select one: O a. O b. Statistic…

A: Answer is b.statistic A measure , such as the mean, based on sample data is called a sample…

Q: Consider two random variables X and Y. The covariance between these two variables is 1.00. We can…

A: Covariance is a statistic that indicates how closely two variables are related. When two variables…

Q: According to mean-variance rule A. The expected return of X is at least equal to the expected return…

A: As per Mean Variance Rule, For same level of return, investor choose one with lower variance and for…

Q: Comment on the SAS regression output including a-e. Compare and comment on the differences between…

A: The regression output provided is from a SAS procedure, which is used to estimate the parameters of…

Q: The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample…

A: B.randomized standard error