B. Which of the following will NOT affect afirm's beta? 1) the choice of the marketportfolio against which to compare thevariability of a firm's returns; 2) the choice ofthe risk-free security; 3) the choice of thetime period used to calculate the firm'sbeta; 4) None of the above, because eachof them affects the calculation of a firm'sbeta.

(2).the choice of the risk free security

Answered: B. Which of the following will NOT…

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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Questions a. - c. refer to the following data. You estimate a 3-factor return-generating process for 5 large portfolios with the following results. a. Which two portfolios are functional equivalents according to the Arbitrage Pricing Theory? b. What is the expected return on portfolio B? c. Suppose that the market is currently pricing portfolio E so that its expected return is 8% and pricing portfolio B so that its expected return is 10%. Describe the forces that will bring about equilibrium according to the APT.
a) The analysts’ stock recommendations are of considerable interest to investors. A study looking at the subsequent performance of new buy and sell recommendations by analysts over a period of time found the following results: Successful Unsuccessful New Buy 957 1233 New Sell 503 221 Note: A buy recommendation is ‘successful’ if the stock outperforms the benchmark by at least 4% over the next year. A sell recommendation is ‘successful’ if the stock underperforms the benchmark by at least 2% over the next year. (iii) What is the probability that a chosen recommendation is either a new buy or successful?
Consider a market with only 3 assets with expected rates of return of 10%, 20%, and 10% respectively. Assume that one can construct two portfolios w and v, with these assets such that these portfolios lie on the minimum-variance set. Those portfolios are defined as follows: w=(0.6, 0.2, 0.2) and v= (0.8, -0.2, 0.4). Moreover, we assume that the market portfolio M is efficient. Using the two-fund theorem we know that the market portfolio can be expressed as a linear combination of w and v, M= x*w+ y*v for some constants x and y. Find the expression of the expected return of the market portfolio in terms of x and y. гм 3D0.12х +0.08y гм 3D0.08х +0.12y rм 3D0.6х +0.4y гм 3D0.4x +0.6у rм 30.8х +0.2у O O O
a) The analysts’ stock recommendations are of considerable interest to investors. A study looking at the subsequent performance of new buy and sell recommendations by analysts over a period of time found the following results: Successful Unsuccessful New Buy 957 1233 New Sell 503 221 Note: A buy recommendation is ‘successful’ if the stock outperforms the benchmark by at least 4% over the next year. A sell recommendation is ‘successful’ if the stock underperforms the benchmark by at least 2% over the next year. (iv) What is the probability of choosing a successful stock, given a new buy recommendation?
Chapter 6. Crypt-Me-Not Investments, Inc. is a new investment firm that deals exclusively with cryptocurrency investments. An investor wants to invest $75,000 in cryptocurrency next year and approaches them about investing in Solana (SOL) and Dogecoin (DOGE) which are currently selling at $175 and $1.00, respectively. The expected annual return on each unit of SOL is $180 and on each unit of DOGE is $100 and like everyone else, the investor wants to maximize their returns. The risk index associated with each unit of SOL is 1.6 and with each unit of DOGE is 1.8. Crypt-Me-Not recommends not crossing a total risk value of 2500 with the client’s investments. Moreover, since DOGE is substantially cheaper and less risky than SOL, the investor insists that a minimum of 1,000 units of DOGE in the portfolio is necessary. Based on these constraints, formulate a Linear Program and answer the following questions after solving it using Solver in Excel (Round up to the next whole number for first…
You are considering purchasing stand-alone shares in two companies: Company A and Company B. While both companies expect a rate of return of 15% under normal market conditions, the possible returns under strong and weak economies differ. There is a 30% chance of a weak economy outcome, a 30% chance of a strong economy outcome, and a 40% chance of a normal outcome. For Company A, under a strong economy, they expect a return of 75%. Under a weak economy, they expect a return of -45%. For Company B, under a strong economy, they expect a return of 23%. Under a weak economy, they expect a return of 7.5%. 1. Create a probability distribution table for both companies. 2. Calculate the standard deviation for both companies. 3. With the distribution, create either a bar graph or a bell curve to graph the two companies. 4. From your calculations, describe which company you would consider investing in, if you were risk averse.
2
Elvanced%20Business%20Statistics%20Main%20question%20paper%20(A).pdf aper (A).pdf 11 / 23 93% Question 20 (4 marks) The asking prices (in Rands) and the actual selling prices (in Rands), after bargaining, of 8 commodities are given below. Commodity A B C D G H Asking price, x 150 350 400 750 100 650 600 250 Selling price, y 120 200 400 550 80 450 350 200 Find the correlation coefficient for the above data. A. 0.8224 B. 0.3722 C. 0.9438 D. 0.5318 (? ENG A @ D 40 INTL 2021/11/18 11:02 25°C 10 4+ "prt sc delete home end 7 + backspace num lock Y U { }
Consider the three grocery stores, Murphy’s Foodliner, Ashley’sSupermarket and Quick Stop Groceries. Quick Stop Groceries is smaller than eitherMurphy’s Foodliner or Ashley’s Supermarket. However, Quick Stop’s convenience withfaster service and gasoline for automobiles can be expected to attract somecustomers who currently make weekly shopping visits to either Murphy’s or Ashley’s.Assume that the transition probabilities are as follows: What is the projected market shares for the 3 convenient stores?

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