5. An equity investment manager is given the task of beating the S&P 500 index. Hence the risk should be measured in terms of(a) Loss relative to the bond benchmark (b) Loss relative to the initial investment (c) Loss relative to the S&P 500 index (d) Loss relative to the expected portfolio value ---6. Consider a portfolio with 80% invested in asset $ X $ and 20% invested in asset $ Y $. The volatilities of asset $ X $ and $ Y $ are 0.2 and 0.3, respectively. The *correlation coefficient* between the two assets is 50%. What is the portfolio volatility?(a) 19.70% (b) 43.51% (c) 12.99% (d) 18.33% ---7. Consider the information from Question 6; however, suppose that the correlation coefficient decreases significantly. What happens to the portfolio volatility?(a) Stays the same (b) Decreases (c) Increases (d) Cannot be determined due to insufficient information

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Answered: 5. An equity investment manager is…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Suppose you have inherited K100,000 from your father-in-law that can be invested in a combination of only two stock portfolios, with the maximum investment allowed in either portfolio set at K75,000 . The first portfolio has an average rate of return of 10%, whereas the second has 20%. In terms of risk factors associated with these portfolios, the first has a risk rating of 4 (on a scale 0 to 10), and the second has 9. Since you wish to maximize your return, you will not accept an average rate of return below 12% or risk factor above 6. Formulate the linear programming model for the problem. How much should you invest in each portfolio? Solve the problem by simplex method.
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Suppose Becky gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She chooses to spend $300 and save the remaining $100. From this, you can tell that Becky's marginal propensity to consume (MPC) is0.75 , and her marginal propensity to save (MPS) is0.25 . Mathematically, it must always be true that: Saving = a. Disposable income+Comsumption b. Comsumption-Disposable income c. Disposable income-Consumption Therefore, it must also be true that: MPS = a. 1-MPC b. 1+MPC c. MPC
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NWP Assessment Player Ul Appl X ples om/was/ui/v2/assessment-player/index.html?launchid=55af9b11-006e-41ba-a782-378cb68e49ba#/question/0 Question 1 of 2 Click here to access the TVM Factor Table Calculator + The cash flow profile for an investment is given below and the interest rate is 8% compounded annually. EOY Net Cash Flow ($) 0 1 2 3 4 5 6 -100 200 Find the present worth of this series using the actual cash flows. $ Round your answer to the nearest dollar. Tolerance is ±4. e Textbook and Media Attempts: 0 of 3 used -/1 Submit Ar
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In the world of mathematical finance, an important skill for any quantitative analyst is to price derivatives. These usually come in the form of options as well as other more exotic financial instruments. For this project we will focus on something called European Call options. We will see how you can estimate the price of an underlying asset (usually a stock) at some time in future T and use this to find how much an option should cost today. First, lets take a look at what a European call option actually is. The idea behind the European call option is that you will enter into a contract with someone that grants you the right, but not the obligation, to purchase some number of shares of a stock at a pre-determined price, called the strike price. In this paper we will say that the payoff for a European call option can be given by: max {S(t) – K, 0}. The reason we do this is because, it would not make sense to exercise the option if the price of the underlying asset is below the strike…
Copy of Lessor nihq.com/web/viewer.html?state=D%7B"ids"%3A%5B"15kf39g-5S7VTg6CmniFQyXQIq2v_07kL"%5D%2C"action"%3 Equilibrium quiz 3 E You've already resp..E Tylon Clark- Algebr.E Copy of Tylon Clark... M escribing Tylon Clark - Copy of Lesson 4 - Problem Set.docx Which statement best describes the effects on the graph of f(x) = 2 when f(x) is replaced by -2f(x +3)-5? A The graph is reflected over the y-axis, vertically compressed by a scale factor of horizontally translated 3 units to the left, and vertically translated 5 units down. The graph is reflected over the x-axis, vertically stretched by a scale factor of 2, horizontally translated 3 units to the left, and vertically translated 5 units down. The graph is reflected over the x-axis, vertically stretched by a scale factor of 2, horizontally translated 3 units to the right, and vertically translated 5 units down. D The graph is reflected over they-axis, vertically compressed by a scale factor of 5, horizontally translated 3 units…
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A proposed project has the following cash flow estimates.Assuming statistically independent cash flows, a normally distributed net present value, and a minimum attractive rate of return of 15%, determine the following. For the following questions, employ an analytical solution: a. the mean and standard deviation of net present value. b. the probability that the net present value is negative. c. the probability that the net present value is greater than $1,000,000. Assume the initial investment and annual receipts are normally distributed. d. Using a Monte Carlo simulation with 10,000 iterations, estimate the probability that the present worth is negative.
How does time-period or length of run affects the behavior of the supply function?
3. Aquasystem performed a make/buy analysis to for making a new water filters. The filter sells for $50 that will require equipment that will cost $200,000 and $25,000 annual operating cost comprise the fixed cost. The variable cost is $20 per filter. The equipment has a 5 year life, no salvage value, and the MARR is 6% per year. The decision to make the filter was based on breakeven point and the historical sales level of 500 filter per year. a. Determine the breakeven point b. An engineer investigated that a supplier can make the filter for $30 each. Determine whether Aquasystem should make or buy the filters.

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