INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Chapter 13, Problem 6PS
Summary Introduction
To calculate: The second regression equation and the results as intercept, slope coefficients, standard errors and t-statistics are to be represented.
Introduction: The security market line (SML) is a line drawn on an outline that fills in as a graphical portrayal of the
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Which of the following statements about the RFM analysis above is NOT correct?
A) The average response rate is 2.02%.
B) Recency metric may perform better to predict responsive customers than Frequency and Mon- etary value metrics.
C) The response rate of recency-based quintile 1 (4.50%) is much greater than the average re- sponse rate, implying that company X would be able to reduce the costs incurred for having a successful number of responses in the campaign if it chose the customers only from the quintile (recency-based quintile 1).
D) This result shows a failure of predicting profitable customers through the RFM metrics because the response rate does not dramatically vary from monetary value-based quintile 1 to 5.
9.
In a Balanced Scorecard, what perspective would a measure of
the number of repeat orders be most likely to appear?
(a) Market perspective
(b) Customer perspective
(c) Internal perspective
(d) Financial perspective
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- Newport, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statistics Multiple R R Square Observations 0.7225 0.8500 30 Coefficients Standard Error T Stat P-Value 0.021 Intercept Production (X) 31,000 5.87 3,493 2.86 0.4640 14.30 0.000 a. What is Newport's total fixed cost? Total Fixed Cost b. What is Newport's variable cost per unit? (Round your intermediate calculations to 2 decimal places.) Variable Cost per unit c. What total cost would Newport predict for a month in which they sold 5,000 units? Total Costs d. What proportion of variation in Newport's cost is explained by variation in production? (Round your intermediate calculations to 2 decimal places.) Proportion of Variationarrow_forwardShow detailed steps to solve the following question. Calculate the Expected Rate, Standard Deviation, Variance and coefficient of variance. Then decide which of the following company is better for investment.arrow_forwardSolve in detailarrow_forward
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