A stock's returns have the following distribution:Demand for theProbability of thisRate of Return ifCompany's ProductsDemand Occurring this Demand OccursWeak0.1(30%)Below average0.1(10)Average0.314Above averageStrong0.3310.2591.0Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not roundintermediate calculations. Round your answers to two decimal places.Stock's expected return:%Standard deviation:%Coefficient of variation:Sharpe ratio:

In the question, data is provided:Risk free rate = 2%

Answered: A stock's returns have the following…

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

Sales delay is the elapsed time between the manufacture of a product and its sale. According an article it is quite common for investigators to model sales delay using a lognormal distribution. For a particular product, the cited article proposes this distribution with parameter values μ = 2.08 and o² = 0.03 (here the unit for delay is months). USE SALT (a) What are the variance and standard deviation of delay time? (Round your answers to two decimal places.) 2.01 1.42 ✓ months² months variance standard deviation (b) What is the probability that delay time exceeds 12 months? (Round your answer to four decimal places.) 0096 (c) What is the probability that delay time is within one standard deviation of its mean value? (Round your answer to four decimal places.) 0.8485 X (d) What is the median of the delay time distribution? (Round your answer to two decimal places.) 8.00 months (e) What is the 99th percentile of the delay time distribution? (Round your answer to two decimal places.)…
Product failure behavior. An article in Hotwire (Dec. 2002) discussed the length of time till failure of a product pro- duced at Hewlett-Packard. At the end of the product’s life- time, the time till failure is modeled using an exponential distribution with mean 500 thousand hours. In reliability jargon, this is known as the “wear-out” distribution for the product. During its normal (useful) life, assume the prod- uct’s time till failure is uniformly distributed over the range 100 thousand to 1 million hours. a. At the end of the product’s lifetime, find the probability that the product fails before 700 thousand hours. b. During its normal (useful) life, find the probability that the product fails before 700 thousand hours. c. Show that the probability of the product failing before 830 thousand hours is approximately the same for both the normal (useful) life distribution and the wear-out distribution
Growth of bacteria culture after one week, represented by its size, is known to follow lognormal distribution with mean of 2 and variance of 0.2. What is the upper and lower quartile of the size of the culture after one week?
I need help figuring out how to determine the percentage of increase. For each of the following models, state what the expected value of Y is when X = 50. Also, state how the predicted value of Y changes when X increases by 5 units (i.e., a 10% increase). 1. Y = 73 + 10X X=50, y=73+10*50 = 573 Y = 573 Change = 50 units 2. lnY = 4.9 + 0.025X x = 50, y = exp(4.9 + 0.025*50) = 468.7 =exp(0.025*5)=1.13 units. Y = 468.7 Change = 1.13 units 3. Y = -632 + 328(lnX) X = 50, y=-632 + 328*(in50) = 651.1 = 328*In(5) = 527.9 Y = 651.1 Change = 527.9 units 4. lnY = 2.7 + 0.94(lnX) x=50, y=exp(2.7 + 0.94*In50) = 588.3 = exp (0.94*In5) = 4.54 Y = 588.3 Change = 4.54 units
H0:μ=12.8H0:μ=12.8H1:μ<12.8H1:μ<12.8Your sample consists of 45 subjects, with a mean of 12.3 and standard deviation of 1.27.Calculate the test statistic, rounded to 2 decimal places. You are conducting a study to see if the probability of a true negative on a test for a certain cancer is significantly less than 0.28. Your sample data produce the test statistic z=−2.672z Find the p-value accurate to 4 decimal places.
A population is normally distributed with mean 18.6 and standard deviation 1.4. (a) Find the intervals representing one, two, and three standard deviations of the mean. one standard deviation (smaller value) (larger value) two standard deviations (smaller value) (larger value) three standard deviations (smaller value) (larger value) (b) What percent of the data lies in each of the intervals in part (a)? (Round your answers to two decimal places.) one standard deviation % two standard deviations % three standard deviations %
A population is normally distributed with mean 19 and standard deviation 1.1. (a) Find the intervals representing one, two, and three standard deviations of the mean. one standard deviation (smaller value) (larger value) two standard deviations (smaller value) (larger value) three standard deviations (smaller value) (larger value) (b) What percent of the data lies in each of the intervals in part (a)? (Round your answers to two decimal places.) one standard deviation % two standard deviations % three standard deviations % (c) Draw a sketch of the bell curve.
2 The operator of a pumping station has observed that demand for water during early afternoon hours has an approximately exponential distribution with mean 100 cfs (cubic feet per second). (a) Find the probability that the demand will exceed 250 cfs during the early afternoon on a randomly selected day. (Round your answer to four decimal places.) (b) What water-pumping capacity, in cubic feet per second, should the station maintain during early afternoons so that the probability that demand will exceed capacity on a randomly selected day is only 0.02? (Round your answer to two decimal places.) cfs
Andrew plans to retire in 40 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that over the entire 20th century, the real (that is, adjusted for inflation) annual returns on U.S. common stocks had mean 8.7% and standard deviation 20.2%. The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. What is the probability (assuming that past pattern of variation continues) that the mean annual return on common stocks over the next 40 years will exceed 10%? What is the probability that the mean return will be less than 5%?
A population is normally distributed with mean 16.3 and standard deviation 1.4. (a) Find the intervals representing one, two, and three standard deviations of the mean. one standard deviation (smaller value) (larger value) two standard deviations (smaller value) (larger value) three standard deviations (smaller value) (larger value) (b) What percent of the data lies in each of the intervals in part (a)? (Round your answers to two decimal places.) one standard deviation % two standard deviations % three standard deviations %

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS