Now suppose the net returns of the three stocks are given by table 2Stocku dA10% 20%B20% 10%с15% 15%Table 2: The net returns of the stocks.(a) Let A and rc be the net returns of stocks A and C respectively. Can you find arandom variable ž such that FA = fc + 2 and E[2] =0?(b) Can you find a risk-averse investor who prefers stock A (or B) to stock C?

Suppose the net returns of the three stocks are given by:StockudA10%20%B20%10%C15%15%Let be the net…

Answered: Now suppose the net returns of the…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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A scientist wants to develop a model to describe the relationship between the average daily temperature, x °C, and her household’s daily energy consumption, y kWh, in winter. A random sample of the average daily temperature and her household’s daily energy consumption are taken from 10 winter days and shown in the table. x -0.4 -0.2 0.3 0.8 1.1 1.4 1.8 2.1 2.5 2.6 y 28 30 26 25 26 27 26 24 22 21 You may use: Sy=255 Sxy=283.8 Syy= 64.5 Find a value for the product moment correlation coefficient r for this data Explain what the value of the product moment corelation tells you about the relationship between daily temperature and the household energy consumption.
(Sec. 3.2) A student is required to enroll in one, two, three, four, five, six on the desired courseload) at a local university. Let Y the number of classes the next student enrolls themselves in. The probability that y classes are selected is known to be proportional to y+1, in other words the pmf of Y is given by p(y) = k(y+1) for y 1,...,7, and 0 otherwise (a) What is the value of k? or seven classes (depending (b) What is the probability that at most four classes are enrolled in? (c) What is the probability that a student enrolls in between three and five classes (inclusive)? y? /40 for y 1,.,7 be the pmf of Y? Explain why why not (d) Could p(y) or
Give an explanation why this statement is either true or false: Portfolio contains n assets. Therefore, portfolio variance for this portfolio is the function of 2n covariances and n variances.
A student goes to the library. Let events B= the student checks out a book and D= the student check out a DVD. Suppose that P(B)=0.54 P(D)=0.45 and P(D|B)=0.50 Round each answer to four decimal places. (a) Find P(B′)Enter the exact answer.P(B′)= (b) Find P(D AND B)Enter the exact answer.P(D AND B)= (c) Find P(B|D).Round your answer to three decimal places.P(B|D)= (d) Find P(D AND B′)Enter the exact answer.P(D AND B′)= (e) Find P(D∣B)Enter the exact answer.P(D∣B′)
Let X1, X2, . . . are independent indicator variables with different probabilities of success. That is, P(Xi = 1) = pi. Define Yn = X1 + X2 + . . . + Xn. Find E(Yn), V ar(Yn) and coefficient of variation of Yn
Random collections of nine different solutions of a calcium compound were given to two laboratories, A and B. Each laboratory measured the calcium content (in mmol per liter) and reported the results. The data are paired by calcium compound. Compound Lab A (x) Lab B (y) 1 2 3 4 7 9. 9.36 14.80 8.79 11.33 10.56 15.61 13.70 12.03 11.56 9.14 14.74 8.67 11.51 10.63 15.59 13.74 12.22 11.56 (a) Rank-order the data using 1 for the lowest calcium reading. Make a table of ranks to be used in a Spearman rank correlation test. Compound Lab A (x) Lab B (y) d = x – y d2 1 3 4 7 8 Ed? Compute the sample test statistic. (Round your answer to three decimal places.) II

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Now suppose the net returns of the three stocks are given by table2 Stock u d A 10% 20% B 20% 10% C 15% 15% Table 2: The net returns of the stocks. (a) Let FA and fc be the net returns of stocks A and C respectively. Can you find a random variable ž such that ƒÂ = c + 2 and E[2] = 0?