An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the S&P 500, then it is possible to reduce the variability of the portfolio's return. In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 Index and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 Index, is collected. A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 Index (X) to prove that the prison stocks portfolio is negatively related to the S&P 500 Index at a 5% level of significance. The results are given in the following Microsoft® Excel output. Standard Error T Stat P-value Coefficients 4.8660 0.3574 13.6136 Intercept S&P 8.7932E-13 -0.5025 0.0716 -7.0186 2.94942E-07 Note: 2.94942E-07 = 2.94942 * 10-/ Referring to Table 12-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 Index, the measured value of the test statistic is Seleccione una: O A. -0.503 Ов. 0.357 О с. 0.072 O D. -7.019

An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the market index like the S&P 500, then it is possible to reduce the variability of the portfolio's return. In other words, one can create a portfolio with positive returns but less exposure to risk. A sample of 26 years of S&P 500 Index and a portfolio consisting of stocks of private prisons, which are believed to be negatively related to the S&P 500 Index, is collected. A regression analysis was performed by regressing the returns of the prison stocks portfolio (Y) on the returns of S&P 500 Index (X) to prove that the prison stocks portfolio is negatively related to the S&P 500 Index at a 5% level of significance. The results are given in the following Microsoft® Excel output. Standard Error T Stat P-value Coefficients 4.8660 0.3574 13.6136 Intercept S&P 8.7932E-13 -0.5025 0.0716 -7.0186 2.94942E-07 Note: 2.94942E-07 = 2.94942 * 10-/ Referring to Table 12-7, to test whether the prison stocks portfolio is negatively related to the S&P 500 Index, the measured value of the test statistic is Seleccione una: O A. -0.503 Ов. 0.357 О с. 0.072 O D. -7.019

Name: TABLE 12-7An investment specialist claims that if one holds a portfol
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: TABLE 12-7An investment specialist claims that if one holds a portfolio that moves in the opposite direction to the marketindex like the s&P 500, then it is possible to reduce the variability of the portfolio's return. In other words, one cancreate

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 president of a mid-sized state university has proposed lowering tuition rates in order to increase the school’s overall graduation rates (meaning she expects the two measures will be negatively associated with each other). She collects data on other similar universities, rating universities as “high” on tuition (above-average tuition costs) or “low” (below average tuition), as well as on their proportion of students who graduate in six years (categorizing with those graduating more than half of their students as “high” and those graduating fewer than half as “low”). A bivariate table with these data is below. Calculate the gamma and then write a sentence or two interpreting what it suggests about the relationship. Is there support for the president’s hypothesis? Graduation Rate by Tuition Rate Tuition Rate Graduation Rate Low High Totals Low 52 40 92 High 80 125 205 Totals 132 165 297
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price.On the basis of this fact, a financial analyst claims we can assume that 76% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 61 stocks traded on the NYSE that day showed that 43 went up. You are conducting a study to see if the proportion of stocks that went up is significantlysmaller than 76%. You use a significance level of α=0.01α=0.01. For this study, we should use Select an answer 2-SampTInt 2-PropZInt 1-PropZInt T-Test χ²GOF-Test 2-SampTTest 2-PropZTest TInterval ANOVA 1-PropZTest χ²-Test The null and alternative hypotheses would be: H0H0: ? p μ Select an answer > = < ≠ (please enter a decimal) H1H1: ? p μ Select an answer ≠ = > < (Please enter a decimal) The test statistic =…
The owner of a small deli is trying to decide whether to discontinue selling magazines. He suspects that only 9.7% of his customers buy a magazine and he thinks that he might be able to use the display space to sell something more profitable. Before making a final decision, he decides that for one day he will keep track of the number of customers that buy a magazine. Assuming his suspicion that 9.7% of his customers buy a magazine is correct, what is the probability that exactly 6 out of the first 13 customers buy a magazine? 0.000305894 0.00100664 0.000699781 0.000778757 0.000204114 0.000326183
An investment company is promoting their mutual investment funds. Their fund specializing in the Hong Kong stock market has been consistently outperforming the Hang Seng Index over the last ten years. The company argues that such strong performance is proof of their great ability in selecting stocks for long-term investment. Based on your understanding of the data generating process and the possible biases associated with it, provide an alternative interpretation of the statistics about fund performance.
You may need to use the appropriate appendix table or technology to answer this question. Approximately 50% of all caregivers of older adults are caring for someone with memory loss (due to is percentage of caregivers caring for older adults with memory loss. This year, in a random sample of 400 caregivers, 181 were caring for older adults with memory loss uch as Alaheimer's or dementia). It is beleved that there has been a reduction in the (a) State the null and the alternative hypotheses. (Enter t for as needed.) (b) At the 0.05 level using the critical value approach, determine if there has been a significant reduction in the proportion of caregivers caring for adults with memory loss Compute the test statistk. Determine the critical value(s) for this test. (Round your answerta) to two decimal places. If the test is one-taled, enter NONE for the unused tal.) test statisticS test statistic State your condusion. O Reject Ha There is insufficient evidence to support the claim that the…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 72 stocks traded on the NYSE that day showed that 12 went up. You are conducting a study to see if the proportion of stocks that went up is significantly less than 0.3. You use a significance level of a = 0.005. What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... O less than (or equal to) a O greater than a This test statistic leads to a decision to... O reject the null O accept the null O…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 61 stocks traded on the NYSE that day showed that 30 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.001α=0.001.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null…
The owner of a small deli is trying to decide whether to discontinue selling magazines. He suspects that only 8.7% of his customers buy a magazine and he thinks that he might be able to use the display space to sell something more profitable. Before making a final decision, he decides that for one day he will keep track of the number of customers that buy a magazine. (b) Assuming his suspicion that 8.7% of his customers buy a magazine is correct, what is the probability that exactly 3 out of the first 14 customers buy a magazine? Give your answer as a decimal number rounded to two digits.
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price. On the basis of this fact, a financial analyst claims we can assume that 55% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 79 stocks traded on the NYSE that day showed that 48 went up. You are conducting a study to see if the proportion of stocks that went up is significantly different from 55%. You use a significance level of a = 0.025. 1. For this study, we should use Select an answer 2. The null and alternative hypotheses would be: Ho:? v Select an answer v (please enter a decimal) Hi:? vSelect an answer v (Please enter a decimal) 3. The test statistic (please show your answer to 3 decimal places.) 4. The p-value = (Please show your answer to 4 decimal places.) 5. The p-value is ? va 6. Based on this, we should Select an…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2017, 9 of the 30 stocks making up the DJIA increased in price.On the basis of this fact, a financial analyst claims we can assume that 54% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. A sample of 74 stocks traded on the NYSE that day showed that 35 went up. You are conducting a study to see if the proportion of stocks that went up is significantly smaller than 54%. You use a significance level of α=0.05α=0.05. how to you come up with the test statistic and p value using excel
The Wall Street Journal asked Concur Technologies, Inc., an expense management company, to examine data from 8.3 million expense reports to provide insights regarding business travel expenses. Their analysis of the data showed that New York was the most expensive city. The following table shows the average daily hotel room rate (X) and the average amount spent on entertainment (Y) for a random sample of 9 of the 25 most-visited U.S. cities. These data lead to the estimated regression equation y = 17.49 + 1.0334x. For these data SSE = 1541.4. Use Table 1 of Appendix B. a. Predict the amount spent on entertainment for a particular city that has a daily room rate of $89 (to 2 decimals). b. Develop a 95% confidence interval for the mean amount spent on entertainment for all cities that have a daily room rate of $89 (to 2 decimals). c. The average room rate in Chicago is $128. Develop a 95% prediction interval for the amount spent on entertainment in Chicago (to 2 decimals).
The use of a HPV vaccination is effective at decreasing risk of cervical cancer overall. Investigators wished to study whether there is a difference in cervical cancer risk among three different risk categories: monogamous relationships only, casual sexual relationships, and anonymous sexual relationships. The investigators then kept track of how many women developed cervical cancer in the study. The expected % of cervical cancer in each of the three risk factor groups is provided. You are interested in investigating if there is a difference between the expected and the observed percentage of women that developed cervical cancer in the three risk categories. What kind of sample and outcome is this?