Standard deviation of returns is often used as a measure of a mutual fund's volatility (risk). A larger standard deviation of returns is anindication of higher risk. According to Morningstar.com (June 17, 2010), the American Century Equity Income Institutional Fund, a largecap fund, has a standard deviation of returns equal to 13.68 percent. Morningstar.com also reported that the Fidelity Small CapDiscovery Fund has a standard deviation of returns equal to 2779 percent Each standard deviation was computed using a sample ofsize 31(a) Calculate the value of the test statistic. (Do not round Intermediate calculations. Round your answer to 2 decimal places.)Test statistic(b) Calculate the critical value by using excel (Round your answer to 2 decimal places.)Critical value(c) At the 01 significance level, what it the conclusion?O RejectO Fall to reject

F testIt is used to compare statistical models. It is fitted to the data set, to identify the model…

Answered: Standard deviation of returns is often…

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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A study of Brown Bag Company's payment practices showed that the company pays its vendors 20 days after the accounting department receives the invoice. The standard deviation is 5 days. Assuming that there is a normal distribution across the company's payments, what percent of the invoices are paid within 15 days of receiving them? Based on your answer, recommend an effective payment strategy for the company.
why is one standard error unit not a good choice for the error bars that relate to the trendline?
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.
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
The stock price for International Business Machines (IBM) historically has followed an approximately normal distribution (when adjusting for inflation) with a mean of $166.305 and standard deviation of $4.2216. What is the probability that on a selected day the stock price is below $162.5?
An analyst found that the average amount of money in bank accounts at his/her bank is $2,000 with a standard deviation of $150. What would be the variance?
An appliance dealer's website features the mean life expectancy values for major household appliances. A freezer's mean life expectancy is 16 years with a standard deviation of 2 years. Using the Empirical Rule, what is the probability that your freezer will function less than 10 years
At the end of 2015, 2016, and 2017, the average prices of a share of stock in a portfolio were $34.83, $34.65, and $31.26 respectively. To investigate the average share price at the end of 2018, a random sample of 30 stocks was drawn and their closing prices on the last trading day of 2018 were observed with a mean of 33.583 and a standard deviation of 19.149. Estimate the average price of a share of stock in the portfolio at the end of 2018 with a 95% confidence interval. Compare and Briefly discuss
The inflation adjusted annual return of a diversified asset portfolio is assumed to have a normal distribution with a mean of 3.5% and a standard deviation of 1.25%. Represent the value for the inflation adjusted annual return that 95% of outcomes would exceed on a diagram and determine this value.
Suppose that an individual stock’s return is normally distributed with a mean of 9% and a standard deviation of 4%. What is the probability that the stock’s return will be less than 12%? (please round your answer to 4 decimal places)
Suppose that the annual rate of return for a common biotechnology stock is normally distributed with a mean of 4% and a standard deviation of 4%. Find the probability that the one-year return of this stock will be negative. Round your answer to at least four decimal places. Explanation Check O 2021 McGraw Hill LLC. All Rights Reserved. Terms of Use Privacy Center Accessibility MacBook Pro <.
According to the New York Daily News, March 5, 2014, people 65 years and older watch an average of 50.5 hours of TV per week. We will estimate the standard deviation to be 12.7 hours per week. Your town has many social programs for senior citizens which may reduce the amount of TV that older people watch. You want to find out if it is true that people 65 and older in your town watch less than 50.5 hours of TV per week. So, you sample 40 people 65 and older in your town. You find that the average time that the 40 people watch per week is 45.8 hours. Can the claim be supported to a level of significance of α = .02, test the hypothesis?

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