Which of the following is NOT true regarding the normal distribution= Multiple Choice It is symmetrical It has a singie peak The points of the curve meet the Xaxis at z--3 and z3 Mean, median and mode are all equal

Q: Consider the following set of dependent and independent variables. Complete parts a through c below.…

A: Step 1: df = n - 1 - No. of predictors   (Predictors: x1 and x2: 2 variables) df = 8 - 1 - 2 df = 5…

Q: Begin by selecting the formula to compute the current ratio.   Current ratio formula =…

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: What is the put-call ratio? What is it used for? What are considered high and low values and what do…

A: The question is based on the concept for indicators of the stock market performance. The Put-Call…

Q: If two returns are positively related to each other, they will have a ________, and if they are…

A: Covariance: calculates the directional relationship between two variables.

Q: A particle moves along line segments from the origin to the points (2, 0, 0), (2, 5, 1), (0, 5, 1),…

A: Step 1: Step 2: Step 3: Step 4:

Q: Define the following terms: Factor risk premium Unit root Random walk with drift…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: In linear regression, compare independent and dependent variables.

A: Linear regression refers to a time series model in statistics that is used for predictive analysis.…

Q: In the context of of cubic interpolation as discussed in the lecture, in order to find the cubic…

A: Please refer to the explanation, THANKYOU !!Explanation:The correct option is select four rates. As…

Q: 3. Find the margin of error for the given values of​ c, s, and n.   c=0.99​, s=5​, n=22 The margin…

A: Margin of error shows the quantum of random sampling error which is calculated by statistics in the…

Q: Which of the following statements are true? A. The lower the M-squared the better. B. The higher…

A: higher the sharpe ratio , the better the portfolio is. higher the treynor ratio, the better the…

Q: Which of the following is not an approach to compute equivalent units? Multiple Choice All of these…

A: Equivalent Units :— Number of incomplete units are assumed to be equivalent to completed units when…

Q: q12-  In the distribution of a variable, if the mean is much smaller than the median, the data…

A: The mean, mode and median are the three categories which can be used to figure out if you have a…

Q: Rit = a₁ + B₁RMt + et, t = 1,..., T,i = 1, ..., N RMt~ lid N (0,0%) Eit~ iid N(0,02) cov (€is, Ejt)…

A: In this question we will be explaining the Single Index Model Regression with the given equation. We…

Q: What is the Riemannian metric? A) A function that defines the inner product of tangent vectors at…

A: In the field of differential geometry, a Riemannian metric is a type of function that defines the…

Q: Sketch the region bounded by the curves x=y34,x=2, and y=0 then find the volume of the solid…

A: ANSWER: ​ Region is bounded by :x=4y3​is a cubic root function. x=2 is a vertical line.y=0 is the…

Q: A continuous random variable may assume _____.   a. only fractional values in an interval or…

A: A continuous random variable is the one which can have infinite value. It refers to the variables…

Q: Which of the options below is most likely FALSE based on the following scatter plot? Variable B 4.5…

A: Requirements of the question and the values we have to determine the false statement.

Q: Consider the generalised linear regression model: y = Xẞ + e, with E[e] = 0 and E[ee] = 022. Let the…

A: The question is asking us to evaluate the properties of the Ordinary Least Squares (OLS) and…

Q: Consider two random variables X and Y. The covariance between these two variables is 1.00. We can…

A: Covariance is a statistic that indicates how closely two variables are related. When two variables…

Q: he variance of expected returns is equal to the square root of the expected returns. a. True b.…

A: Formula for variance:S2=∑(Xi-X̄) 2/n S2=VarianceXi=Value of one observationX̄=Mean value of all…

Q: The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample…

A: B.randomized standard error

Q: An exponential probability distribution

A: The correct answer is: (C) is a Continuous distribution. An exponential probability distribution is…

Q: The linear kos function is written by the equation Y = a + bX. of the equation, X represents.....

A: Linear functions can be defined as the graph that is a straight line with equation of: Y = a = bX. A…

Q: Which of the following statement is true of a covariance matrix?  a. The diagonal values are…

A: A covariance matrix is a representation of variances and covariances between assets. Hence, a n × n…

Q: O negative O positive O vertical O zero Cannot be determined.

A: CAL stands for Capital Allocation Line. It is a combination of risk free security with multiple…

Q: There is one period. Assume a representative agent with utility function U(ct) = αc_t − βc^2_tassume…

A: To find the stochastic discount factor, we need to calculate the marginal utility of consumption at…

Q: Let X be a random variable such that E[X] = μ, V[X] =σ², max[X] = My min(X) = m with 0 Not egual to…

A: 1) To analyze whether the statement is true, we need to first understand the process of…

Q: How do you know when to use the formula FV=PV(1+i)n vs. FV=PV(1+r/m)mt

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: q27-  Which of the following related to the Correlation coefficient (r) are true?     Select…

A: A correlation coefficient is a statistical measure that is used by individuals to measure the…

Q: On the Apple tab, the slope and beta are the same value.

A: In general, the claim that "the slope and beta are the same value on the Apple tab" is false.

Q: 1. The diameter of a particle of contamination (in micrometers) is modeled with the probability…

A: Step 1: Let us assume that the random variable Xdenotes the diameter of a particle of contamination…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.