Suppose you have the following inputs:• TSX/S&P Return = 20• MSCI –World Index Return =18• Variance of the Canadian index =30• Variance of the World index = 26• Correlation coefficient p = .60• Risk free = 2Assume that the weight on the optimal portfolio is .554 for the TSX. And that thestandard deviation of the optimal portfolio is 4.76.What is the expected return on the optimal international portfolio made up ofthe two indices? (Closest to)A. 19.11%B. 15.84%C. 16.22%D. 21.22%Reset Selection

The expected values for optimal portfolio for the TSX and MSCI are 20 and 18 respectively. The…

Answered: Suppose you have the following inputs:…

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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Suppose an airline claims that its flights are consistently on time with an average delay of at most 15 minutes. It claims that the average delay is so consistent that the variance is no more than 15 minutes. Doubting the consistency part of the claim, a disgruntled traveler calculates the delays for his next 25 flights. The average delay for those 25 flights is 22 minutes with a standard deviation of 15 minutes.
a) Researchers studying the returns on mutual funds for 2012 found that they were normally distributed with a mean of 15% and a standard deviation of 10%. What percentage of mutual funds had a gain (i.e. a return greater than 0)? = 93.32% Then, b) What percent of funds had returns less than 10%? a. 30.85%b. 61.70%c. 69.15%d. None of the above
The Knowles/Armitage (KA) group at Merrill Lynch advises clients on how to create a diversified investment portfolio. One of the investment alternatives they make available to clients is the All World Fund composed of global stocks with good dividend yields. One of their clients is interested in a portfolio consisting of investment in the All World Fund and a treasury bond fund. The expected percent return of an investment in the All World Fund is 7.80% with a standard deviation of 18.90%. The expected percent return of an investment in a treasury bond fund is 5.50% and the standard deviation is 4.60%. The covariance of an investment in the All World Fund with an investment in a treasury bond fund is −12.4. (Round your answers for standard deviation to two decimal places.) (a) Which of the funds would be considered the more risky? Why? Neither fund is risky since both are equivalent. A treasury bond fund would be considered the more risky because it has a smaller standard deviation.…
what is the unexplained variation? how would i find the indicated prediction interval?
(3)A university claims that the average tertiary entry (TE) score of applicants to its business studies program has increased during the past three years. Three years ago, the mean and the standard deviation of TE scores of the university's business studies program applicants were 920 and 20, respectively. In a sample of 36 of this year's applicants for the program, the mean TE score was 925. At the 5% level of significance, can we conclude that the university's claim is true? (Assume that the standard deviation is unchanged.)
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: The correlation between the fund returns is 0.12. a-1. What are the investment proportions in the minimu variance portfolio of the two risky funds? a-2 What are the expected value and standard deviation of the minimum variance portfolio rate of retrurn?
Consider a population of 1024 mutual funds that primarily invest in large companies. You have determined that u, the mean one-year total percentage return achieved by all the funds, is 9.80 and that o, the standard deviation, is 0.50. Complete (a) through (c). a. According to the empirical rule, what percentage of these funds is expected to be within +2 standard deviations of the mean? 95 % b. According to the Chebyshev rule, what percentage of these funds are expected to be within +2 standard deviations of the mean? 75 % (Round to two decimal places as needed.) c. According to the Chebyshev rule, at least 88.89% of these funds are expected to have one-year total returns between what two amounts? Between and (Round to two decimal places as needed.)

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