ge=28Returns on investment "A" are normally distributed, with mean return of US$8,500 per year and a standard deviation of US$1,000 per year. Whichof the following categories of returns would you fall, if you desire to be in the top 5% of the returns from "A"?Select one:O a. US$8,500 – US$9,000O b. US$9,800- US$10,500c. More than US$9,700O d. More than US$10,100

Answered: Image /qna-images/answer/c6ddd7c9-3ff8-4321-bca5-62dec6db1942.jpg

Answered: Returns on investment "A" are normally…

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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An investor recorded the following annual returns of one of his investments. You are required to calculate and comment on; Mean return. Variance and standard deviation of the return. Geometric return. Year 2016 2017 2018 2019 2020 Return 15% 17% 19% 10% -5%
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STATE: Andrew plans to retire in 4040 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that from 1966 to 2015, the annual returns on S&P 500500 had mean 11.0%11.0% and standard deviation 17.0%17.0% . PLAN: The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. We can use the Central Limit Theorem to make an inference. SOLVE: What is the probability, ?1p1 , assuming that the past pattern of variation continues, that the mean annual return on common stocks over the next 4040 years will exceed 10%10% ? (Enter your answer rounded to two decimal places.) What is the probability, ?2p2 , that the mean return will be less than 5%5% ? (Enter your answer rounded to two decimal places.)
K A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.4. What is the standard deviation of the portfolio? OA. 31.02% OB. 22.93% C. 26.97% OD. 29.67%
Which of the following statements about geometric mean return is are true: I. Geometric mean return is always less than or equal to arithmetic mean return II. Geometric mean return is used only for grouped data. III. Geometric mean return cannot be a negative number. a. I only d. III only b. I & II c. I & III d. III only
Using the following returns, calculate the arithmetic average returns, the standard deviations, and the geometric returns for the stock A, B, and C. Assume the return of stocks are normally distributed. If Mr. Wong owns a stock C, based on the historical return data, there is only a 2.5 percent chance that the stock C will produce a return greater than _____ percent in any one year. If Mr. Wong owns a stock B, which range of returns would Mr. Wong expect to see approximately two-thirds of the time? Year A % B % C % 1 2.54 4.84 1.64 2 3.56 5.86 2.86 3 4.54 6.84 3.64 4 2.94 5.24 2.04 5 1.54 3.84 0.64 6 4.54 6.84 4.84 7 2.54 3.84 0.64 8 4.54 6.84 3.64 9 2.94 6.24 7.24
An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data: (4 year ago Quantity sold was 1059), (3 year ago Quantity sold was 1169 ), (2 year ago Quantity sold was 1740 ) and the last year Quantity sold was 1903 . The previous trend line had predicted 1218 for three years ago, 1287 for two years ago and 1355 for last year. What was the mean squared error (MSE) for these forecasts? a. 169304.67 b. 19.67 c. 350 d. 0.2
Cost for standard veterinary services at a local animal hospital follows a Normal model with a mean of $80 and a standard deviation of $20. Fill in the blanks according to this model: The middle 95% of veterinary bills cost between $ type your answer.... 2 type your answer... type your answer... Previous 3 S 3 e d 4 % of veterinary bills are between $60 and $80. % of bills are between $20 and $140. r f % 5 t 9 A 6 y h & 7 and $ type your answer... U n ★ 8 i E 9 k ✔ O P ctri
What is the standard deviation of the following investment: Actual Return Probability 5% 40% 45% 10% -12% -5% 15% 20% ○ 4.6% 12.8% 11.0% 9.2%
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