Scenario: Suppose a financial institution holds a well diversified$35,500,000 position in stocks. The variance of this position inrelation to the overall S&P is equal to 1.95. Over the past yearthe average daily variation of the S&P is 160 basis points with astandard deviátion of 80 basis points. The z-score is 1.96.What is the stock value change that corresponds to a 95%probability that no stock changes will exceed this value?O 162.574 basis pointsO 465.76 basis pointsO 132 basis pointsQ 292 basis pointsScenario: Suppose a financial institution holds a well diversified$35,500,000 position in stocks. The variance of this position inrelation to thé overall S&P is equal to 1.95. Over the past yearthe average daily variation of the S&P is 160 basis points with astandard deviation of 80 basis points. The z-score is 1.96.What is the daily earnings at risk with 95% confidence?O $692,250O $284,000O $1,653,448O $568,000

Answered: Image /qna-images/answer/7142d48b-1dfe-44b0-8e2a-a6b3311514e3.jpg

Answered: O 162.574 basis points O 465.76 basis…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Times for a surgical procedure are normally distributed. There are two methods. Method A has a mean of 31 minutes and a standard deviation of 2 minutes, while method B has a mean of 35 minutes and a standard deviation of 1.0 minutes. (a) Which procedure is preferred if the procedure must be completed within 30 minutes? O Method A O Method B O Either Method (b) Which procedure is preferred if the procedure must be completed within 38.0 minutes? O Either Method O Method A O Method B (c) Which procedure is preferred if the procedure must be completed within 37 minutes? O Method B O Either Method O Method A < Prev 19 of 19 Next to search 22 立

A queueing system has an arrival rate of 37 visitors per day (standard deviation of 32) and a service rate of 42 visitors per day (standard deviation of 25). (Round your answer to three decimal places.) What is the coefficient of variation of the arrival rate?
Scores on a certain exam are normally distributed with a mean of 90 and a variance of 25. What is the z-value for a score of 80? -2.0 -0.4 1.0 2.0 0.4
Two accounting professors decided to test if the variance of their grades is different or no. To accomplish this, they each graded the same 10 exams with the following results: Standard Deviation 22.4 Mean Grade Professor 1 79.3 Professor 2 82.1 12.0 F What is the P-value of the test? Select one: a. between 0.01 and 0.025 Ob. between 0.025 and 0.05 C. between 0.05 and 0.10 Od. bigger than 0.10
Times for a surgical procedure are normally distributed. There are two methods. Method A has a mean of 21 minutes and a standard deviation of 5 minutes, while method B has a mean of 25 minutes and a standard deviation of 25 minutes. (a) Which procedure is preferred if the procedure must be completed within 23 minutes? O Method A O Method B O Either Method (b) Which procedure is preferred if the procedure must be completed within 32.0 minutes? O Method A O Method B O Either Method (c) Which procedure is preferred if the procedure must be completed within 29 minutes? OMethod A O Method B O Either Method Next Prey 19 of 19 here to search op t9 144 14 ou ts 47 47 to 40 16 is 券

Compute mean, variance, and standard deviation
Colonial Funds claims to have a bond fund which has maintained a mean share price of $14.00. They claim that the variance of the share price is 0.18. To test this claim, the investor randomly selects 12 days during the last year. He finds an average share price of $13.80 with a standard deviation of 0.3905. Can the investor conclude that the share price of the bond fund varies from Colonial Funds claims at a = 0.05? Step 1 of 5: State the hypotheses in terms of the standard deviation, Round the standard deviation to four decimal places when necessary. Answer Ho: Ha Tables Keypad Keyboard Shortcuts
Colonial Funds claims to have a bond fund that has maintained a mean share price of $⁢10.00. They claim that the variance of the share price is 0.18. To test this claim, the investor randomly selects 29 days during the last year. He finds an average share price of $⁢9.80 with a standard deviation of 0.4006. Can the investor conclude that the share price of the bond fund varies from Colonial Funds claims at α=0.05? Step 1 of 5 : State of the hypotheses in terms of the standard deviation. Round the standard deviation to four decimal places when necessary Step 2 of 5 : Determine the critical value(s) of the test statistic. If the test is two-tailed, separate the values with a comma. Round your answer to three decimal places. Step 3 of 5 : Determine the value of the test statistic. Round your answer to three decimal places. Step 4 of 5 : Make the decision. Step 5 of 5 : What is the conclusion?

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