Suppose a stock analyst recommends buying stock in the following companies:CompanyToyondaSaalvoGMWHonsubishiShexxonMobronAiringBoebusGoohooPherkIndustryAutomotiveAutomotiveAutomotiveAutomotiveOil and gasOil and gasAircraftAircraftTechnologyPharmaceuticalEach of the following portfolios contains four of the stock picks. Which portfolio is the most diversified?O Toyonda, Saalvo, GMW, HonsubishiO Boebus, Airing, Shexxon, Mobron.O Pherk, Toyonda, Goohoo, ShexxonO Toyonda, Honsubishi, Boebus, Airing Hor+RISK (Standard deviation of portfolio return)01True30False1020NUMBER OF STOCKS IN PORTFOLIOTrue or False: Increasing the number of stocks in a portfolio reduces market risk.40Consider two stock portfolios. Portfolio A consists of 20 different stocks from firms in different industries. Portfolio B consists of four different stocks,also from firms in different industries. The return on Portfolio A is likely to bevolatile than that of Portfolio B.

Answered: RISK (Standard deviation of portfolio…

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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The lowest portfolio risk will result when the asset returns are perfectly positively correlated. Select one: True False
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 49 and a standard deviation of 16 . The customers with scores in the bottom 5% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 51 and a standard deviation of 15 . The customers with scores in the bottom 10% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
If an F statistic is negative, which of these statements is true?
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse. What is the questionnaire score that separates customers who are considered risk averse from those who ar not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. U Continue X S Submit Terms of Use | Privacy Center
A company manager plans to purchase a machine. The company requires a high quality machine. The manager is currently considering two companies that supply this machine. The machine from company A can produce approximately1050 units in average per day, but the standard deviation of this machine is about 250 units per day; while the machine from company B can produce approximately 900 units in average per day, but the standard deviation of this machine is about 100 units per day. Both of these two companies guarantee at least 10 years life. In addition, both prices are similar although machine A is a little bit higher. Price is not the main concern for the manager because both prices are under their budget. However, the manager cannot decide which machine should be purchased, because he is not sure what test he needs to conduct. Can you recommend the manager what test the manager should conduct? Should the manager conduct the test about the difference between two population means or the…
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50 and a standard deviation of 14. The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
A Scenario: Jimmy store sells large tins of Tom Tucker Coffee. The deli uses a periodic review system. Inventory is checked every 10 days which more orders are needed for tins. Order lead time is 3 days. Average demand is 7 tins, so average demand during the reorder period and order lead time (13) is 91 tins. Standard deviation of demand during the same 13 day period is 17 tins.1. Calculate the restocking level ( Assume the desired level is 90%)2. Suppose standard deviation of demand during the 13-day period drops to 4 tins. What happened to restocking level? Explain why?3. Draw a saw-tooth diagram. Beginning inventory level is equal to restocking level and the demand rate is a constant 7 tins per day. What is the safety stock level? What is the average inventory level?
A fitness company is building a 20-story high-rise. Architects building the high-rise know that women working for the company have weights that are normally distributed with a mean of 143 lb and a standard deviation of 29 lb, and men working for the company have weights that are normally distributed with a mean of 178 lb and a standard deviation or 32 lb. You need to design an elevator that will safely carry 18 people. Assuming a worst case scenario of 18 male passengers, find the maximum total allowable weight if we want a 0.995 probability that this maximum will not be exceeded when 18 males are randomly selected.maximum weight = -lb Round to the nearest pound.Answers obtained using exact z-scores or z-scores rounded to 2 decimal places are accepted The amounts of nicotine in a certain brand of cigarette are normally distributed with a mean of 0.956 g and a standard deviation of 0.302 g. The company that produces these cigarettes claims that it has now reduced the amount of…
Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 49 and a standard deviation of 16 . The customers with scores in the bottom 15% are described as "risk averse." What is the questionnaire score that separates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.

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