the risks inherent in stock returns in a portfolio of shares using the concepts of standard deviation and diversification
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the risks inherent in stock returns in a portfolio of shares using the concepts of standard deviation and diversification
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- Central Limit Theorem 2. According to the International Graduation Association, on average, high school girls in Canada spend $\$ 223.55$ on a prom dress with a standard deviation of $\$ 18.14$. If 76 high school girls are surveyed in Canada, what is the probability that the mean cost of their dresses is between $\$ 225.00$ and $\$ 228.00$ ? 3. It has been estimated that $23 \%$ of nurses are offered to work overtime on a regular basis. If we randomly selected 225 nurses, what is the probability that $25 \%$ or less of them will be offered overtime on a regular basis? SP.VS.717Risk 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.Hz A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 19 days yields the following return percentages. -2.4, -2.64, 0.75, 1.96, 0.25, -2.17, 1.74, 2.59, 2.97,-0.86, -2.55, -0.72, -1.33, -0.95, -1.73, 2.49, 0.82, 0.15, -2.18 Send data to calculator Send data to Excel If we assume that the returns are normally distributed, find a 90% confidence interval for the mean daily return on this stock. Give the lower limit and upper limit of the 90% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: Upper limit: I Don't Know Submit X 3 O Search e acer Ⓒ2022 McGraw Hill LLC. All Rights Reserved. Terms of Use * X
- Suppose that the value of an index of the stock market increases on average about 0.02% per day (calculated with continuous discounting) and a volatility (i.e., standard deviation) of 1% per day. Assuming that the returns are Normally distributed, what would be the 5% Daily Expected Shortfall (ES) expressed as a percent return? (Note: Enter your answer rounded to the nearest 2 decimal places. (For example, -1.2345% should be entered as -1.23%).3 Historical evidence indicates that times between fatal accidents on scheduled American domestic passenger flights have an approximately exponential distribution. Assume that the mean time between accidents is 44 days. (a) If one of the accidents occurred at 12:00 am on August 1 of a randomly selected year in the study period, what is the probability that another accident occurred that same month? (Round your answer to four decimal places.) (b) What is the variance of the times between accidents?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 CenterRisk 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.Empirical research on stock market data indicates that over the course of a year, 60% of stocks go up. A random sample of 600 stocks is going to be chosen at the beginning of next year. Let p be the proportion of the stocks in the sample that go up over the course of a year. Answer the following. (If necessary, consult a list of formulas.) (a) Find the mean of p. 0 (b) Find the standard deviation of p. 0 (c) Compute an approximation for P(p>0.64), which is the probability that more than 64% of the stocks in the sample go up over the course of the year. Round your answer to four decimal places. X 5
- Select one method to filter conditional volatility. Present and interpret descriptive statistics of conditional volatility of (i) overnight returns, (ii) intraday returns, and (iii) total returns.3(ii) A bank sets up a Special Purpose Vehicle (SPV) for a CDO issue. The SPV wants to understand the risks that they may face, so they run simulations of the annual cash flows out of their portfolio. Selected results of the simulation are shown in the table below. Annual Portfolio Cash Flows Mean Std. Dev. Min. 5th 10th Percentiles 15th 85th 90th (1,172) 16,651 (7,760) (6,800) (4,880) (3,920) 2,480 95th Max. 14,320 15,280 26,400 The SPV wants to hold risk capital to cover its losses to the 95th percentile, and expected CDO payouts for the next five years add up to $100m. How much capital would you advise them to hold, and why?A certain brokerage house wants to estimate the mean daily return on a certain stock. A random sample of 12 days yields the following return percentages.−1.81, 1.54, 1.52, −2.58, −2.3, 0.97, 0.93, −1.06, 1.04, 0.2, −0.63, −2.75 Send data to calculator If we assume that the returns are normally distributed, find a 90% confidence interval for the mean daily return on this stock. Then find the lower limit and upper limit of the 90% confidence interval. Carry your intermediate computations to at least three decimal places. Round your answers to one decimal place. (If necessary, consult a list of formulas.) Lower limit: ? Upper limit: ?
