Variance means how much uncertainty o Variance means Principal X Rate X Time. O Variance means how much VIX or volatilin means how much bonds return. Variance
Q: Cost and Revenue (S) MFCL MRPL B Quantity of Labor (number of workers) (Appendix) In the graph above…
A: Economics refers to the social science that studies the production, distribution, and consumption of…
Q: The marginal revenue (in thousands of dollars) from the sale of x gadgets is given by the following…
A: Given Marginal revenue: R'(x)=4x(x2+30,000)-2/3 Here revenue is in thousands of doller. Revenue…
Q: Determine the interest rate (i) that makes the pairs of cash flows shown economically equivalent.…
A: When we say that cash flows are "equivalent," it means that they have the same value or effect on an…
Q: Suppose the Canadian economy has only two commercial banks: Bank A and Bank B. The following table…
A: The total amount of monetary assets that are in circulation within an economy at a given time is…
Q: This table compares the requirements for a career as an athletic trainer or an air traffic…
A: Given: The median pay for Athletic Trainers = 41,600 per year. And median pay for Air Traffic…
Q: Question 01: Discuss the charracteristics of an ideal railway station.
A: Goods are products which fulfill human desires and have value, such as a satisfactory commodity…
Q: Cooper River Glass Works (CRGW) produces four different models of desk lamps as shown on the…
A: In this question, we are presented with a scenario involving four different products: Alpha, Bravo,…
Q: Figure 11-1 depicts three families, X, Y, and Z, and their utility based on spending on education…
A: Free public education refers to a system in which the government provides primary, secondary, and/or…
Q: You are a hotel manager and you are considering four projects that yield different payoffs,…
A: Expected pay off=Probability of boom * pay off in Boom+ Probability of Recession * pay off in…
Q: The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios…
A: We have given the market for pistachios. Suppose a stretch of unreasonably good weather occurs,…
Q: The rate of depreciation (in dollars per year) for a certain truck is given by the function below,…
A: Depreciation in economics refers to the decrease in the value of an asset over time due to wear and…
Q: Refer to the figure below. Without trade, what would the producer surplus be? Price of Wasions $18.5…
A: The measure of the benefit or profit gained by producers or suppliers in a market transaction is…
Q: The following question explores the political, social, and economic effects of slavery in the…
A: "Economic effects" allude to the changes in the economic environment brought about by an occasion,…
Q: We have the following data on the loanable funds market in Country B: Real Interest Rate Loanable…
A: The crowding-out effect describes the decrease in private investment as a result of government…
Q: Refer to the graph shown. Calculate the approximate elasticity of demand for the line segment CD:…
A: Price Elasticity of Demand measures the percentage change in quantity demanded of a good or service…
Q: Suppose the owners of the bank contribute an additional $200 from their own funds and use it to buy…
A: When the owners of the bank contribute an additional $200 from their own funds and use it to buy…
Q: ces $35 $30 $25 $20 $15 $10 $5 0 D 6 12 18 24 30 36 42 48 54 60 Quantity O Instructions: Enter your…
A: Deadweight loss is the decrease in total surplus resulting when efficient quantity is not produced.
Q: c. What are Cathy's profits/losses per day if she produces the profit-maximizing quantity of corn in…
A: Hi, since you require answers for sub-parts c, d and e we are providing solutions only for those…
Q: Owing to increasing, food and transport prices, the Consumer Price Index (CPI) in South Africa…
A: Economic policymaking can become difficult since it includes dealing with a complex combination of…
Q: Suppose that the price p (in dolars) and the weekly sales x (in thousands of units) of a certain…
A: The speed at which the quantity of goods or services sold is changing over time is termed the 'rate…
Q: 1. In what ways can you as a Filipino reader be affected by such works (short stories in Tagalog)…
A:
Q: 1. Mind Mapping: Do the following instructions below ate a cluster map as shown below using…
A: Utilizing this multi-media format to literary text will help you to effectively and cooperatively…
Q: Draw two and four sectors circular flow income expenditure flow diagram models.
A: The circular flow of income shows how the money is transferred from one sector to another and how it…
Q: Claire and Don are farmers who produce beef and corn. In a year, Claire can produce 40 tons of beef…
A: The selection of production depends on the…
Q: costs are given in the following table. At what price will they earn zero profits? Output D O $5 O…
A: Firm maximizes profit by producing at a point where marginal cost is equal to price.
Q: 1. As a grade 11 Filipino learner, in what way you can show a sense of adaptability to the diverse…
A: As a grade 11 Filipino student, I can show a feeling of adaptability to the different Philippines…
Q: Price (dollars) 220 200 180- 160- 140- 120- 100- 80- 60- 40 20- Demand for GPS Units 240 Quantity…
A: Since you have posted a question with multiple subparts, we will provide the solution to only the…
Q: For the given CFD if the MARR (1)-8%, the Net Present Worth, NPW is close to: $7,000 Benefits $2.000…
A: We have given the cash flow diagram representing the cost and benefit of a project and MARR =8%.The…
Q: A truck was purchased four years ago for $65,000 to move raw materials and finished goods between a…
A: old truck is sold at 40,000 at the current time.New truck can be purchase at 70000Cash flow is given…
Q: Hamburgers per week O 2.0. O 1.0. 0.5. 6 O 1.5. 5 4 3 2 0 B H 2 3 4 5 6 Refer to Figure 3-1. At…
A: Indifference curve is the line joining all the points that yield the same level of utility.…
Q: b. Why might a payment not cause some people to go the gym? OA. A person might view a payment for…
A: People’s decision making depends upon various factors whereby the person compares the cost and…
Q: The following graph shows the consumption function (C) for a hypothetical private closed economy and…
A: Keynesian Cross is a diagram where the equilibrium output is determined corresponding to a point…
Q: Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the…
A: Profit maximization is a fundamental goal for businesses aiming to achieve financial success. It…
Q: What will MOST likely follow a decision by Netflix to raise its monthly subscription price? O a.…
A: In this question, we are examining the potential outcome following a decision by Netflix to raise…
Q: Suppose the price of A is $3, the price of B is $5, the consumer's income is $30, and the consumer's…
A: An income constraint is also called the budget constraint. It represents all the affordable…
Q: Consider these two alternatives. Capital investment Annual revenues Annual expenses Estimated market…
A: First, determine the initial decision between 2 alternatives by computing annual worth.
Q: How does inflation affect your income level and spending?
A: Inflation:- Inflation is defined as the amount at which prices go up throughout time. Inflation is…
Q: Select between the two options using the corporate MARR of 15% per year and a future worth analysis…
A: In this question, a comparison is made between two options, D and E, using a future worth analysis…
Subject: eco
![Please identify this graph:
low vanance distribution
high vanance distribution
341x211px
www.bio200.nam buffalo.edu](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F1f029fa6-508b-49a7-a78c-12d90a2c1224%2Fxw0rwff_processed.jpeg&w=3840&q=75)
![Variance means how much uncertainty or risk.
Variance means Principal X Rate X Time.
Variance means how much VIX or volatility.
Variance means how much bonds return.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F1f029fa6-508b-49a7-a78c-12d90a2c1224%2F2u6xc_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Is co-variance a measure of relative risk, or absolute risk? A relative risk, because it is linked with the performance(s) other asset(s). B absolute risk, because it is not linked with the performance(s) other asset(s). relative risk, because it measures the co-movement of two assets. absolute risk, though it measures the co-movement of two assets.A stock has a correlation with the market of .45. The standard deviation of the market is 21%, and the standard deviation of the stock is 35%. a. What is the covariance between the market and the stock? b. Calculate the stock beta.RISK ANALYSIS A financial investor builds a portfolio that is worth an expected £35mil. The investor knows that his analysts can build a model to boost the potential return from the portfolio investment. The additional return has a Normal Distribution with mean £3mil and standard deviation £0.5mil. The investor wishes to sell his financial services at a price that guarantees his expected profit will be 5% of the total return from the portfolio. What should the price of his financial service be? Simulate (with a min of 200 repetitions) the average and the standard deviation of the profit the financial advisor realizes when setting the price for his services between 1% and 10% of the total expected return from the portfolio. Then discuss your findings.
- Economics Consider a supplier that manufactures a product at $2 per unit and sells them to retailers at $7 per unit. The retailer sells each product to the end consumer at $10. At this retail price, market demand is normally distributed, with a mean of 1,000 and a standard deviation of 300. The supplier agrees to buy back unsold products for $b even though any leftover product at the end of sale period are worthless. a) What is the retailer's order quantity under local optimization when b=0? b) What is the optimal order quantity under global optimization? Round up to the nearest integer. Derive the optimal value of b. c) With the optimized value of b in the buyback clause, how many discs should an independent retailer order? Round up your solution to the nearest integer. d) What is the expected overstocking given the optimized value of $b? What is the expected understocking given the optimized value of $b? What is retailers' expected profit? What is the manufacturer's expected profit?An insurer has a pool of identical policyholders each with a potential claim that fits the ideal characteristics of insurability. There are 10,000 policyholders in the pool. Any single policyholder has an expected claim of 10 and the claim’s standard deviation is 2. The insurer collects premiums at the beginning of the year, and pays claims at the end of the year. Premium is 9.5 per insurer. The insurer invests premiums at an annual rate of 5.68 percent. What is the probability (a very close approximation will suffice) that the insurer will not have sufficient money to pay claims?Uncertainty The Utility function is U = W1/3Flood occurs with Probabilities=1/25. The Value of a house is $450,000 if no flood. Aftera flood, the value is $50,000. Cost of insurance is 10 cents per dollar.a. Calculate EU b. Calculate EV c. Calculate CE d. Calculate RP e. Calculate the variance and standard deviation f. How much insurance should you buy? Assume your are paying premium in all events.g. What is the expected profit of the insurance company? h. Calculate the coefficient of absolute and relative risk aversion
- Consider an investment that pays off $700 or $1,600 per $1,000 invested with equal probability. Suppose you have $1,000 but are willing to borrow to increase your expected return. What would happen to the expected value and standard deviation of the investment if you borrowed an additional $1,000 and invested a total of $2,000? What if you borrowed $2,000 to invest a total of $3,000? Instructions: Fill in the table below to answer the questions above. Enter your responses as whole numbers and enter percentage values as percentages not decimals (.e., 20% not 0.20). Enter a negative sign (-) to indicate a negative number if necessary. Invest $1,000 Invest $2,000 Invest $3,000 Expected Value Percent Increase Standard Deviation 1150 S 28 % $ 8 % $ Expected Return N/A Doubled Tripled : #You plan to invest $1,000 in a corporate bond fund or in a common stock fund. The following table represents the annual return (per $1,000) of each of these investments under various economic conditions and the probability that each of those economic conditions will occur. Compute the expected return for the corporate bond and for the common stock fund. Show your calculations on excel for expected returns. Compute the standard deviation for the corporate bond fund and for the common stock fund. Would you invest in the corporate bond fund or the common stock fund? Explain. If choose to invest in the common stock fund and in (c), what do you think about the possibility of losing $999 of every $1,000 invested if there is depression. Explain.What is the risk premium(s)?
- Explain why the variance of an investment is a useful measure of the risk associated with itSuppose one uses the single-index model to estimate characteristics of securities.Which of the following statements is correct? (a)The covariances between securities are the same as in the data. (b)The variance of a portfolio is the same as in the data. (c)The expected return and the variance of a security are the same as in the data. (d)The expected return,variance and covariances of a security are the same as in the da1. The following table gives the PDF (Probability Density Function) of the discrete variable X X -1 -2 2 3 4 f(x) 0.1 0.2 0.1 0.3 0.1 0.2 Calculate the E(x) (expectation) and var(x) (variance) 2. Prove the following properties of expectation and variance: If a and b are constants, X and Y are random variables, then E(aX+b)=aE(x)+b var (aX+ b) = a² var (X) var (X+ Y)= var (X) + var (Y) +2 cov(X, Y) =var (X) + var (Y) + 2pox0y Of which p is correlation coefficient, oz and o, are standard error of X and Y. 3. Assume that X- N(6, 4). What is the probability that 2 10?
![Managerial Economics: Applications, Strategies an…](https://www.bartleby.com/isbn_cover_images/9781305506381/9781305506381_smallCoverImage.gif)
![Managerial Economics: Applications, Strategies an…](https://www.bartleby.com/isbn_cover_images/9781305506381/9781305506381_smallCoverImage.gif)