The year is 208o. The market portfolio has an expected return of 12%, and a standard deviationof returns of 20%. Bitcoin, with return řBTC, is now 70% of the market by market capitalization. That is, inthe market portfolio, wBtC =constitute 30% of the market, by market capitalization.0.7. Let's call the other components of the market collectively fother: TheyWrite an expression for the covariance of fBTC with the market, in terms of the variancea)of řBTC, the variance of řother, and the covariance of řBTC with rother·b)ĪBTC, the variance of fother, and the covariance of fBTC Wwith fother.Write an expression for the variance of the market portfolio, in terms of the variance ofc)CAPM holds, what is the expected return on bitcoin, E [ĩBTCl? Assume that the risk-free rate is 3%.The standard deviation of řBTC is 25% and the standard deviation of ĩother is 12%. If the

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Answered: Write an expression for the covariance…

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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15) Fine the sum of products (SP) and sum of squares (SS) for the variables of interest mentioned in the study above. Then find the correlation between the two variables of interest. (Round all answers to 2 decimal points) a) SP = b) SSbullying = c) SSprejudice = d) r =
The following table was generated from the sample data of 10 college students regarding the number of parking tickets the student receives in a semester, the student's age, and the student's GPA. The dependent variable is the student's GPA, the first independent variable (x1) is the number of parking tickets, and the second independent variable (x2) is the student's age. Coefficients Standard Error t-Stat p-value Intercept 19.557814 3.953299 4.947214 0.002585 Number of Parking Tickets -0.070521 0.075387 -0.935452 0.385659 Student's Age -0.850699 0.201228 -4.227531 0.005515 Copy Data Step 1 of 2: Write the multiple regression equation for the computer output given. Round your answers to three decimal places. E Tables E Keypad Answer How to enter your answer (opens in new window) Keyboard Shortcuts x1 +
An Economics instructor assigns a class to investigate factors associated with the gross domestic product (GDP) of nations. Each student examines a different factor (such as life expectancy, literacy rate, etc.) for a few countries and reports to the class. Apparently, some of the classmates do not understand Statistics very well because several of their conclusions are incorrect. Explain the mistakes in comments a and b below. a) Explain the mistake in the statement "There was a very strong correlation of 1.22 between Life Expectancy and GDP" Choose the correct answer below O A. A correlation cannot be greater than 1. O B. A correlation that is greater than 1 implies that the variables are not quantitative, so the correlation cannot be interpreted. OC. A correlation that is close to 1 implies a very weak correlation. The correlation must be close to 10 for it to be interpreted as a very strong correlation. O D. A correlation that is greater than 1 implies a weak correlation, not a…
A researcher found a significant correlation of .12 between gender (coded as 0 = ‘male’ and 1 = ‘female’) and number of friends at university. If the assigned values of gender were changed to 1 = ‘female’ and 2 = ‘male’, how would this affect the correlation? The strength of the relationship would become weaker The amount of variance explained by the relationship would increase It would become nonsignificantThe sign would change to become negative A researcher is trying to predict anxiety (measured on a 7-point scale) from exposure to stress (operationalised as the number of stressful life events participants can recall in the last week). She has found a correlation coefficient of r = .54 between anxiety and stress, with a standard deviation of 4.45 for anxiety and a variance of 17.21 for stress. What other information is needed to calculate b? The sums of squares of stressThe sums of products of anxiety and stress The covariance of anxiety and stressNo other information is…
Consider data on every game played by the Brooklyn Nets in 2014 (82 games) that includes the variables margin, - the Net's margin of victory (number of points the Nets scored minus the number of points their opponent scored) for game i, and • home; - a dummy variable equal to 1 when the Nets are the home team (game i was played in their home arena) and equal to 0 when they are the away team (game i was played in the opponent's arena). I use the least-squares method to estimate the following regression model margin = a + ßhome; + ei Below is the Stata output corresponding to the estimated regression line: regress margin home if team===== "Brooklyn Nets" . Source Model Residual Total margin home _cons SS 1459.95122 15252.0488 16712 df 1459.95122 1 80 190.65061 None of the above 81 206.320988 Coef. Std. Err. 8.439024 3.049595 -5.219512 2.156389 MS t Number of obs F(1, 80) Prob > F R-squared O The Nets lost more games than they won in 2014 P>|t| 2.77 0.007 -2.42 0.018 Adj R-squared = Root…
Consider data on every game played by the Brooklyn Nets in 2014 (82 games) that includes the variables margin; - the Net's margin of victory (number of points the Nets scored minus the number of points their opponent scored) for game i, and • home; - a dummy variable equal to 1 when the Nets are the home team (game i was played in their home arena) and equal to 0 when they are the away team (game i was played in the opponent's arena). I use the least-squares method to estimate the following regression model margin = a + ßhome; + ei Below is the Stata output corresponding to the estimated regression line: regress margin home if team==== "Brooklyn Nets" Source Model Residual Total margin home _cons SS 1459.95122 15252.0488 16712 df 1 80 Coef. Std. Err. MS 81 206.320988 8.439024 3.049595 -5.219512 2.156389 1459.95122 190.65061 t Number of obs F (1, 80) Prob > F R-squared. Adj R-squared = Root MSE P>|t| 2.77 0.007 -2.42 0.018 82 7.66 0.0070 0.0874 0.0760 13.808 [95% Conf. Interval]…

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