c. Calculate the geometric average returns of each stock. What do you conclude? (Do not round intermediate calculations. Roundyour answers to 2 decimal places.)ABCXYZGeometric Average%%d. If you were equally likely to earn a return of 24%, 10%, 17%, 4%, or 1% in each year (these are the five annual returns for stock ABC),what would be your expected rate of return? (Do not round intermediate calculations.)Expected rate of return%le. What if the five possible outcomes were those of stock XYZ? Consider the rate of return of stocks ABC and XYZ.Year12SAWN T345FABC24%101741ABCXYZa. Calculate the arithmetic average return on these stocks over the sample period. (Round your answers to 2 decimal places.)rxyz34%12181-9Arithmetic AverageABCXYZ%%b. Which stock has greater dispersion around the mean return?

YearrABCrXYZ124%34%210%12%317%18%44%1%51%-9%

Answered: Consider the rate of return of stocks…

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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There are two underlying assets in an asset pool. Each has a 2.8 percentchanges of failing. You own an asset that will pay $1 unless both assets fail. Graph theprobability of your asset not paying as the correlation between the two input assets runsfrom 0.5 to 0.98. For what levels of correlation is the output asset investment grade
performance in 2009. Analysis of this data reveals a correlation coefficient of r=−0.2234. What would be the predicted stock return for a company whose CEO made $15 million? What would be the predicted stock return for a company whose CEO made $25 million? What would be the predicted stock return for a company whose CEO made $15 million? % (Type an integer or decimal rounded to one decimal place as needed.)
E4-45
(Score for Question 2: of 7 points) 2. The data in the table represents the ralnfall (in inches) for two different cities every month. City 1 3.1 4.5 6.3 7.3 4.3 33 2.1 1.1 0.9 0.8 City 2 2.3 2.4 3.3 3.6 3.2 5.2 2.2 2.1 2.0 1.8 (a) Which city had the most spread in their rainfall? Show your work (b) Calculate the IQR for both cities. What is the difference between the IQR for both cities? (c) Which city had the most rainfall? Explain why you chose that city Answer. States) OFocus 100% pased-station us-cli. ational Conters for Environmontal DE hp
From the data in the table it shows the 2019 daily return data for the S&P 500 Index (stocks) and the US 30 year Bond (bonds). How do I test the hypothesis that mean daily return on stocks exceeds the mean daily return on bonds? Please show the steps. S&P500 dailt returns data: Date Price Daily Return 2019-12-31 3230.78 0.294602% 2019-12-30 3221.29 -0.578082% 2019-12-27 3240.02 0.003398% 2019-12-26 3239.91 0.512817% 2019-12-24 3223.38 -0.019545% 2019-12-23 3224.01 0.086614% 2019-12-20 3221.22 0.494478% 2019-12-19 3205.37 0.445929% 2019-12-18 3191.14 -0.043230% 2019-12-17 3192.52 0.033529% US 30 Year Bond Date Price Daily Return 31-Dec-19 2.389 2.32% 30-Dec-19 2.335 0.78% 29-Dec-19 2.317 -0.03% 27-Dec-19 2.318 -0.16% 26-Dec-19 2.321 -0.71% 25-Dec-19 2.338 0.15% 24-Dec-19 2.334 -0.83% 23-Dec-19 2.354 0.31% 22-Dec-19 2.346 0.12% 20-Dec-19 2.344 -0.43%
The domestic airfare for business travel for the current year and the previous year was reported. Below is a sample of 12 flights with their domestic airfares shown for both years. t-value=? (up to 3 decimal places) df=?
2. The phone rings and the President is calling you. He says, 'Can you please tell me how much of the variability of my popularity rating is explained by the inflation rate? This is the data: Inflation 10 12 8 |14 rate Popularity70 Rating 75 85 84 48
Q6 Given a data set where the response variable is normalized ( centered ) and it is know that the correlation between the individual predictor variable & response variable is, r 0.9. And, it is found that S,-10 and X=100. (i) Find B= a. Write the formula for B= (ii) Find B= (iii) (iv) Find the value the predictor, which yields the response variable to be 1 X Q7 There are several assumptions which are needed to be verified prior to using a univariate regression model and/or doing any traditional model analysis ( e.g. need to verify these assumptions prior to doing the actual regression or F/T tests etc ). Write down the two most essential mathematical assumptions needed by explaining them in a brief written statement (i) 1" = (ii) 2* = answer both questions plese
Use no. 16 in table 2 whenever necessary. Indicate the steps in doing it on excel file.
Which number below is representative of the largest correlation? r = -0.75 r = .05 r = -0.45 r = 0.65
Arbor Systems and Gencore stocks both have a volatility of 44%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is 0.00. If the correlation is 0.00, the volatility of the portfolio is%. (Round to one decimal place.)
y: 30 -10 50 10 1 25 -15-60 15 8 35 20-5 7. 10 9. -40 -5 X: 9. 3 4 6. 0.05. Test for significant positive (linear) correlation at a =

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