Assuming the return on market index to be 14.5 % and standard deviation of return on market index to be 16%Caluclate the portfolio reurn under Single Index model? Example 22: Consider a portfolio of six securities with the followingcharacteristics:Residual Variance (per cent)Security Weighting Alpha---0.28Beta10.10(0.91230.150.760.876030.202.521.7152.40.10--0.160.97860.251.551.07670.200.470.8682

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Answered: Caluclate the portfolio reurn under…

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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Fall 2020 Yi_sales Xi_advert Xi*Yi Xi2 Predicted Yi_sales Residuals Residuals2 700 8 5600 64 626.6307 31.36929 984.0326 560 2 1120 4 292.4166 267.5834 71600.89 1000 13 13000 169 892.8691 47.13091 2221.323 302 5.8 1751.6 33.64 513.3378 -166.338 27668.26 100 2.1 210 4.41 303.7459 -179.746 32308.57 21681.6 275.05 134783.1 y-bar = 532.4 x-bar = 6.18 Correlation matrix Fall 2020 Yi_sales Xi_advert Yi_sales 1 0.816882 Xi_advert 0.816882 1 Suppose you are doing a simple, ordinary least squares regression to predict the sales (in millions) of a Fortune 500 company, Yi,…. using advertising expenditures (in millions), Xi. Above are some calculations completed. Which of the following statements best represents how to interpret the sample coefficient of correlation, r, for the sales…
For a whole life insurance of 1000 on (x) payable at the end of the year of death: (a) 4. = 0.045 and qr+1 = 0.062 (b) v = 0.92 (c) Ag+2 0.4523 %3D Calculate the change in the expected present value of this insurance if q+1 is doubled.
An investor is presented with a choice of two investments: an established clothing store and a new bookstore. Each choice requires the same initial investment and each produces a continuous income stream of 3%, compounded continuously. The rate of flow of income from the clothing store is f(t)=12,000, and the rate of flow of income from the book store is expected to be g(t)=10,000e^0.05t. Compare the future values of these investments to determine which is the better choice over the next 2 years.
Suppose that JB Cos. has a capital structure of 78 percent equity, 22 percent debt, and that its before-tax cost of debt is 13 percent while its cost of equity is 17 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.
The R-squared of a regression of an asset’s excess returns against a multi-factor asset pricing model indicates the proportion of the asset’s total volatility that is non-systematic. True False
Assn #3 Pg 13 (1-10) And Works x em/?file=https://drive.google.com/uc?id%3D1CTEVTWK8MB4C_mgM7cZiHsSSPeOAZ 10&export%3Ddownload&filename%3DAttachment:%20PDF:%2 9. The balance in a bank account with an annual interest rate of 2%, compounded annually, can be represented using the function f(t) = 1000(1.02), where t is the time in years after opening the %3D 1 account. What was the approximate account balance 6 years and 3 months, or 6- years, after 4 the account was opened?
Suppose sales for the past 6 months have been82, 104, 107, 116, 92, and 116 Using a smoothing coefficient of 0.5, what is the exponentially smoothed value for the 3rd period? (please round your answer to 1 decimal place)
A regression was run to determine if there is a relationship between the happiness index (y) and life expectancy in years of a given country (x).The results of the regression were: ˆyy^=a+bxa=-1.778b=0.143 (d) If the life expectancy is increased by 5 years in a certain country, how much will the happiness index change? Round to two decimal places.(e) Use the regression line to predict the happiness index of a country with a life expectancy of 94 years. Round to two decimal places.
Using L'Hopital's rule, how could it be applied to continious compound interest? Please provide an example. Please and thank you!
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…
8. In a regression model if you drop one insignificant variable then A. R ^ 2 will decrease but SSE will increase. B. R ^ 2 will increase but SSE will decrease. C. R ^ 2 will increase and SSE also will increase. D. R ^ 2 will decrease and SSE also will decrease. E. None
A young person opens an investment plan in which intrest is compounded continously and additions to the account and deposited continously at age 27 with an inital deposit of $2000 and make deposits in a conintous manner of $1500 per year thereafter. Assuming a constant intrest rate of 7% what will be the balancw when he reaches 65. Use modelling of first order diffrentiaves

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