Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute 2y. 13 0 36 23 31 25 26 -13 -13 -23 8 -2 26 16 24 17 16 -2 -3 -8

Do bonds reduce the overall risk of an investment portfolio? Let x be a random variable representing annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be a random variable representing annual return for the Vanguard Balanced Index (60% stock and 40% bond). For the past several years, assume the following data. Compute 2y. 13 0 36 23 31 25 26 -13 -13 -23 8 -2 26 16 24 17 16 -2 -3 -8

Name: Do bonds reduce the overall risk of an investment portfolio? Let x be
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Description: Do bonds reduce the overall risk of an investment portfolio? Let x be a random variablerepresenting annual percent return for the Vanguard Total Stock Index (all Stocks). Let y be arandom variable representing annual return for the Vanguard Balanced

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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You don't need to be rich to buy a few shares in a mutual fund. The question is, how reliable are mutual funds as investments? This depends on the type of fund you buy. The following data are based on information taken from a mutual fund guide available in most libraries.A random sample of percentage annual returns for mutual funds holding stocks in aggressive-growth small companies is shown below. -1.2 14.3 41.9 17.9 -16.8 4.4 32.6 -7.3 16.2 2.8 34.3 -10.6 8.4 -7.0 -2.3 -18.5 25.0 -9.8 -7.8 -24.6 22.8 Use a calculator to verify that s2 ≈ 350.311 for the sample of aggressive-growth small company funds.Another random sample of percentage annual returns for mutual funds holding value (i.e., market underpriced) stocks in large companies is shown below. 16.3 0.4 7.4 -1.3 -3.3 19.4 -2.5 15.9 32.6 22.1 3.4 -0.5 -8.3 25.8 -4.1 14.6 6.5 18.0 21.0 0.2 -1.6 Use a calculator to verify that s2 ≈ 136.430 for value stocks in large companies.Test the claim that the population…
Coffee and blood pressure. A scientist suspects that coffee increases blood pressure. So, he measures the systolic blood pressure of six random patients and then measures it again 30 minutes after they drink a single cup of caffeinated coffee. The results are tabulated below. Test the claim that coffee causes an increase in blood pressure. Before Coffee 123 114 100 120 112 115 After Coffee 123 119 102 121 112 118 (a) Why are these paired data? O This table does not have paired data; there is no clear relationship between the data in each column. O Each column contains data from the same patient. O Most of the 'After Coffee' values are smaller than the corresponding 'Before Coffee' values. O The after and before rows are the same size. (b) Write the hypotheses in symbols. Note that this problem uses Haiffabefore-after instead of Pdiff-after-before so be careful. O H;: Pdiffabefore-after = 0 H3: Pdiff-before-after 0 O Ho: Hdiffabefore-after H3: Pdiffabefore-after = 0 = 0 OH,:…
An automotive center keeps track of customer complaints received each week. The probability distributions of complaints are shown below. The random variable, xi, represents the number of complaints, and p(xi) is the probability of receiving xi complaints for two of the stores. The cost impact of each complaint is believed to be y=$10x3 where x is the number of complaints. Store A xi 0 1 2 3 4 5 6 p(xi) 0.10 0.15 0.20 0.25 0.15 0.10 0.05 Store B xi 0 1 2 3 4 5 6 p(xi) 0.10 0.15 0.25 0.22 0.13 0.08 0.07 Sample from these distributions to compute the total number of complaints (store A+B) per week for 52 weeks.
Match n = 4, n = 8, n= 12 with the correct graph. Each histogram shown below represents part of a binomial distribution. Each distribution has the same probability of successp but different numbers of trials n. AP(x) 0.40- AP(x) 0.40 0.30- 0.30- 0.20- 0.20- 0.10- 0.10- 0.00- 0 3 6 9 12 0.00- 0 3 6 9 12 (a) (b) AP(x) 0.40- 0.30- 0.20- 0.10- 0.00 **** Histogram (a) has the number of trials n = Histogram (b) has the number of trials n = Histogram (c) has the number of trials n = What happens as the value of n increases and the probability of success remains the same? O A. As n increases, the distribution becomes more skewed right. O B. As n increases, the distribution becomes more skewed left. OC. As n increases, the distribution becomes more symmetric.
An economist wonders if corporate productivity in some countries is more volatile than in other countries. One measure of a company's productivity is annual percentage yield based on total company assets.A random sample of leading companies in France gave the following percentage yields based on assets. 4.6 5.4 3.4 3.1 2.4 3.5 2.8 4.4 5.7 3.4 4.1 6.8 2.9 3.2 7.2 6.5 5.0 3.3 2.8 2.5 4.5 Use a calculator to verify that the sample variance is s2 ≈ 2.109 for this sample of French companies.Another random sample of leading companies in Germany gave the following percentage yields based on assets. 3.3 3.2 3.2 4.1 5.4 5.5 5.0 5.4 3.2 3.5 3.7 2.6 2.8 3.0 3.0 2.2 4.7 3.2 Use a calculator to verify that s2 ≈ 1.077 for this sample of German companies.Test the claim that there is a difference (either way) in the population variance of percentage yields for leading companies in France and Germany. Use a 5% level of significance. How could your test conclusion relate to the…
C. Test statistics D. Make a decision
Correlation Camille Joy Brokerage would like to project the selling price of townhouses. As an experiment, the company takes a random sample of 12 recently sold houses. These are shown in the following table. Floor Area of the houses (In Square Meters) Selling Price (In Million Pesos) 100 120 80 75 170 70 48 36 28 200 240 120 3.8 4.6 2.5 2.2 5.6 5.2 4.1 1.8 2.1 8.3 9.3 5.5 a. Calculate the coefficient of correlation using the Pearsons’ Product-Moment Coefficient of Correlation and the Spearman’s Rank-Order Coefficient of Correlation. b. Construct a scatter diagram
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Exercises 32: The data in Table 2 represent the rates of return of the Standard and Poor's Index of 500 Stocks from January 2002 through June 2005. Is there sufficient evidence to support the claim that positive monthly rates of return are random at the a = 0.05 level of significance? Table 2 Date Return (%) | Date Return (%) || Date Date Return (%) Return (%) 1/2002 -2.12 1/2003 -2.74 1/2004 1.73 1/2005 -2.53 2/2002 -2.08 2/2003 -1.70 2/2004 1.22 2/2005 1.89 3/2002 3.67 3/2003 0.84 3/2004 -1.64 3/2005 -1.91 4/2002 -6.14 4/2004 4/2005 4/2003 8.10 -1.68 -2.01 5/2002 -0.91 5/2003 5.09 5/2004 1.21 5/2005 3.00 6/2002 -7.25 6/2003 1.13 6/2004 1.80 6/2005 0.90 7/2002 -7.90 7/2003 1.62 7/2004 -3.43 8/2002 0.49 8/2003 1.79 8/2004 0.23 9/2002 -11.00 9/2003 -1.19 9/2004 0.94 10/2002 8.64 10/2003 5.50 10/2004 1.40 11/2002 5.71 11/2003 0.71 11/2004 3.86 12/2002 -6.03 12/2003 5.08 12/2004 3.25 Source:Yahoo! Finance
Exercise 13-6 (LO13-2) The owner of Maumee Ford-Volvo wants to study the relationship between the age of a car and its selling price. Listed below is a random sample of 12 used cars sold at the dealership during the last year. Car Age (years) Selling Price ($000) 1 9 8.1 2 7 6.0 3 11 3.6 4 12 4.0 5 8 5.0 6 7 10.0 7 8 7.6 8 11 8.0 9 10 8.0 10 12 6.0 11 6 8.6 12 6 8.0 Click here for the Excel Data File If we want to estimate selling price on the basis of the age of the car, which variable is the dependent variable and which is the independent variable? b-1. Determine the correlation coefficient. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) x y x−x¯x-x¯ y−y¯y-y¯…
Select the correct choice (i, ii, or iii) for each a, b, c, d, and fill in any answer boxes in your choice below. (Round to one decimal place as needed.) i. x ≤ ___ % ii. x ≥ ___% iii. ___% ≤ x ≤ ___%
Sales of a particular product for the years 2017 through 2020 have been 390, 455, 432 and 487 respectively. What sales would you predict for 2021 using a weighted moving average with weights of 0.45 for the immediate preceding year and 0.3, 0.15 and 0.1 for the three years before that?