Mathematical Ideas (13th Edition) - Standalone book
13th Edition
ISBN: 9780321977076
Author: Charles D. Miller, Vern E. Heeren, John Hornsby, Christopher Heeren
Publisher: PEARSON
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Chapter 4.2, Problem 17E
Identify each numeral in Exercises 1-20 as Babylonian, Mayan, or Greek. Give the equivalent in the Hindu-Arabic system.
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4. Assume that a risk-free money market account is added to the market described in Q3.
The continuously compounded rate of return on the money market account is log (1.1).
(i) For each given μ, use Lagrange multipliers to determine the proportions (as a
function of μ) of wealth invested in the three assets available for the minimum
variance portfolio with expected return μ.
(ii) Determine the market portfolio in this market and calculate its Sharp ratio.
3. A market consists of two risky assets with rates of return R₁ and R2 and no risk-free
asset. From market data the following have been estimated: ER₁ = 0.25, ER2 = 0.05,
Var R₁ = 0.01, Var R2 = 0.04 and the correlation between R1 and R2 is p = -0.75.
(i) Given that an investor is targeting a total expected return of μ = 0.2. What
portfolio weights should they choose to meet this goal with minimum portfolio
variance? Correct all your calculations up to 4 decimal points.
(ii) Determine the global minimum-variance portfolio and the expected return and
variance of return of this portfolio (4 d.p.).
(iii) Sketch the minimum-variance frontier in the μ-σ² plane and indicate the efficient
frontier.
(iv) Without further calculation, explain how the minimum variance of the investor's
portfolio return will change if the two risky assets were independent.
2. A landlord is about to write a rental contract for a tenant which lasts T months. The
landlord first decides the length T > 0 (need not be an integer) of the contract, the
tenant then signs it and pays an initial handling fee of £100 before moving in. The
landlord collects the total amount of rent erT at the end of the contract at a continuously
compounded rate r> 0, but the contract stipulates that the tenant may leave before T,
in which case the landlord only collects the total rent up until the tenant's departure
time 7. Assume that 7 is exponentially distributed with rate > 0, λ‡r.
(i) Calculate the expected total payment EW the landlord will receive in terms of T.
(ii) Assume that the landlord has logarithmic utility U(w) = log(w - 100) and decides
that the rental rate r should depend on the contract length T by
r(T)
=
λ
√T
1
For each given λ, what T (as a function of X) should the landlord choose so as to
maximise their expected utility? Justify your answer.
Hint. It might be…
Chapter 4 Solutions
Mathematical Ideas (13th Edition) - Standalone book
Ch. 4.1 - Convert each Egyptian numeral to Hindu-Arabic...Ch. 4.1 - Convert each Egyptian numeral to Hindu-Arabic...Ch. 4.1 - Prob. 3ECh. 4.1 - Convert each Egyptian numeral to Hindu-Arabic...Ch. 4.1 - Convert each Hindu-Arabic numeral to Egyptian...Ch. 4.1 - Convert each Hindu-Arabic numeral to Egyptian...Ch. 4.1 - Convert each Hindu-Arabic numeral to Egyptian...Ch. 4.1 - Convert each Hindu-Arabic numeral to Egyptian...Ch. 4.1 - Chapter Z of the hook of Numbers in the Bible...Ch. 4.1 - Prob. 10E
Ch. 4.1 - Chapter 1 of the hook of Numbers in the Bible...Ch. 4.1 - Prob. 12ECh. 4.1 - Chapter 1 of the hook of Numbers in the Bible...Ch. 4.1 - Chapter 1 of the hook of Numbers in the Bible...Ch. 4.1 - Convert each Roman numeral to Hindu-Arabic form....Ch. 4.1 - Convert each Roman numeral to Hindu-Arabic...Ch. 4.1 - Convert each Roman numeral to Hindu-Arabic form....Ch. 4.1 - Convert each Roman numeral to Hindu-Arabic form....Ch. 4.1 - Convert each Hindu-Arabic numeral to Roman form....Ch. 4.1 - Prob. 20ECh. 4.1 - Convert each Hindu-Arabic numeral to Roman...Ch. 4.1 - Convert each Hindu-Arabic numeral to Roman form....Ch. 4.1 - Convert each Chinese numeral to Hindu-Arabic form.Ch. 4.1 - Convert each Chinese numeral to Hindu-Arabic...Ch. 4.1 - Convert each Chinese numeral to Hindu-Arabic form.Ch. 4.1 - Prob. 26ECh. 4.1 - Convert each Hindu-Arabic numeral to Chinese...Ch. 4.1 - Prob. 28ECh. 4.1 - Prob. 29ECh. 4.1 - Convert each Hindu-Arabic numeral to Chinese...Ch. 4.1 - Prob. 31ECh. 4.1 - Prob. 32ECh. 4.1 - Prob. 33ECh. 4.1 - Prob. 34ECh. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Prob. 36ECh. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Prob. 38ECh. 4.1 - Prob. 39ECh. 4.1 - Prob. 40ECh. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Work each addition or subtraction problem, using...Ch. 4.1 - Prob. 47ECh. 4.1 - Use the Egyptian algorithm to find each...Ch. 4.1 - Prob. 49ECh. 4.1 - Prob. 50ECh. 4.1 - In Exercises 51 and 52, convert all numbers to...Ch. 4.1 - In Exercises 51 and 52, convert all numbers to...Ch. 4.1 - Explain why each step would be an improvement in...Ch. 4.1 - Explain why each step would be an improvement in...Ch. 4.1 - Explain why each step would be an improvement in...Ch. 4.1 - Prob. 56ECh. 4.1 - The ancient Egyptian system described in this...Ch. 4.1 - Prob. 58ECh. 4.1 - The ancient Egyptian system described in this...Ch. 4.1 - Prob. 60ECh. 4.1 - The ancient Egyptian system described in this...Ch. 4.1 - Prob. 62ECh. 4.1 - Prob. 63ECh. 4.1 - Prob. 64ECh. 4.1 - The ancient Egyptian system described in this...Ch. 4.1 - The ancient Egyptian system described in this...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Prob. 2ECh. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Prob. 4ECh. 4.2 - Prob. 5ECh. 4.2 - Prob. 6ECh. 4.2 - Prob. 7ECh. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Prob. 9ECh. 4.2 - Prob. 10ECh. 4.2 - Prob. 11ECh. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Identify each numeral in Exercises 1-20 as...Ch. 4.2 - Prob. 21ECh. 4.2 - Write each number as a Babylonian numeral. 32Ch. 4.2 - Write each number as a Babylonian numeral.
23....Ch. 4.2 - Prob. 24ECh. 4.2 - Prob. 25ECh. 4.2 - Write each number as a Babylonian numeral. 3280Ch. 4.2 - Write each number as a Babylonian numeral.
27....Ch. 4.2 - Prob. 28ECh. 4.2 - Prob. 29ECh. 4.2 - Prob. 30ECh. 4.2 - Prob. 31ECh. 4.2 - Prob. 32ECh. 4.2 - Prob. 33ECh. 4.2 - Prob. 34ECh. 4.2 - Prob. 35ECh. 4.2 - Prob. 36ECh. 4.2 - Write each number as a Mayan numeral. 4694Ch. 4.2 - Write each number as a Mayan numeral. 4328Ch. 4.2 - Prob. 39ECh. 4.2 - Prob. 40ECh. 4.2 - Prob. 41ECh. 4.2 - Prob. 42ECh. 4.2 - Prob. 43ECh. 4.2 - Prob. 44ECh. 4.2 - Prob. 45ECh. 4.2 - Prob. 46ECh. 4.2 - Prob. 47ECh. 4.2 - Prob. 48ECh. 4.2 - Prob. 49ECh. 4.2 - Prob. 50ECh. 4.2 - Prob. 51ECh. 4.2 - Prob. 52ECh. 4.2 - Prob. 53ECh. 4.2 - Prob. 54ECh. 4.2 - Prob. 55ECh. 4.2 - Write each number as a Greek numeral.Ch. 4.3 - Write each number in expanded form. 73Ch. 4.3 - Write each number in expanded form. 265Ch. 4.3 - Write each number in expanded form
3. 8335
Ch. 4.3 - Write each number in expanded form 12,398Ch. 4.3 - Prob. 5ECh. 4.3 - Prob. 6ECh. 4.3 - Prob. 7ECh. 4.3 - Prob. 8ECh. 4.3 - Prob. 9ECh. 4.3 - Prob. 10ECh. 4.3 - Prob. 11ECh. 4.3 - Prob. 12ECh. 4.3 - Prob. 13ECh. 4.3 - Prob. 14ECh. 4.3 - Prob. 15ECh. 4.3 - Prob. 16ECh. 4.3 - Prob. 17ECh. 4.3 - Prob. 18ECh. 4.3 - Prob. 19ECh. 4.3 - Prob. 20ECh. 4.3 - Prob. 21ECh. 4.3 - Prob. 22ECh. 4.3 - Prob. 23ECh. 4.3 - Prob. 24ECh. 4.3 - Prob. 25ECh. 4.3 - Prob. 26ECh. 4.3 - Prob. 27ECh. 4.3 - Perform each subtraction using the nines...Ch. 4.3 - Prob. 29ECh. 4.3 - Prob. 30ECh. 4.3 - Prob. 31ECh. 4.3 - Identify the number represented on each...Ch. 4.3 - Prob. 33ECh. 4.3 - Prob. 34ECh. 4.3 - Prob. 35ECh. 4.3 - Sketch an abacus to show each number.
36. 183
Ch. 4.3 - 2547 Sketch an abacus to show each number.Ch. 4.3 - Prob. 38ECh. 4.3 - Prob. 39ECh. 4.3 - Use the lattice method to find each product. 32741Ch. 4.3 - Prob. 41ECh. 4.3 - Prob. 42ECh. 4.3 - Prob. 43ECh. 4.3 - Refer to Example 10 where Napier's rods were used....Ch. 4.3 - Prob. 45ECh. 4.3 - Use Napier's rods (Figure 9) to find each product....Ch. 4.3 - Prob. 47ECh. 4.3 - Prob. 48ECh. 4.3 - Prob. 49ECh. 4.3 - Prob. 50ECh. 4.3 - Prob. 51ECh. 4.3 - Use the Russian peasant method to find each...Ch. 4.3 - Prob. 53ECh. 4.3 - The Hindu-Arabic system is positional and uses ten...Ch. 4.4 - List the first twenty counting numbers in each...Ch. 4.4 - List the first twenty counting numbers in each...Ch. 4.4 - List the first twenty counting numbers in each...Ch. 4.4 - List the first twenty counting numbers in each...Ch. 4.4 - Write (in the same base) the counting numbers just...Ch. 4.4 - Write (in the same base) the counting numbers just...Ch. 4.4 - Write (in the same base) the counting numbers just...Ch. 4.4 - Write (in the same base) the counting numbers just...Ch. 4.4 - Prob. 9ECh. 4.4 - Prob. 10ECh. 4.4 - Prob. 11ECh. 4.4 - Prob. 12ECh. 4.4 - Determine, in each base, the least and greatest...Ch. 4.4 - Determine, in each base, the least and greatest...Ch. 4.4 - Prob. 15ECh. 4.4 - Prob. 16ECh. 4.4 - Prob. 17ECh. 4.4 - Prob. 18ECh. 4.4 - Prob. 19ECh. 4.4 - Prob. 20ECh. 4.4 - Prob. 21ECh. 4.4 - Prob. 22ECh. 4.4 - Prob. 23ECh. 4.4 - Convert each number to decimal form by expanding...Ch. 4.4 - Prob. 25ECh. 4.4 - Prob. 26ECh. 4.4 - Prob. 27ECh. 4.4 - Prob. 28ECh. 4.4 - Prob. 29ECh. 4.4 - Prob. 30ECh. 4.4 - Prob. 31ECh. 4.4 - Convert each number from decimal form to the given...Ch. 4.4 - Convert each number from decimal form to the given...Ch. 4.4 - Prob. 34ECh. 4.4 - Prob. 35ECh. 4.4 - Prob. 36ECh. 4.4 - Make each conversion as indicated. 6748nine to...Ch. 4.4 - Prob. 38ECh. 4.4 - Prob. 39ECh. 4.4 - Convert each number from octal form to binary...Ch. 4.4 - Convert each number from binary form to octal...Ch. 4.4 - Convert each number from binary form to octal...Ch. 4.4 - Prob. 43ECh. 4.4 - Prob. 44ECh. 4.4 - Make each conversion as indicated.
45. 101101two...Ch. 4.4 - Make each conversion as indicated.
46....Ch. 4.4 - Identify the greatest number from each list.
47.
Ch. 4.4 - Prob. 48ECh. 4.4 - Prob. 49ECh. 4.4 - There is a theory that twelve would be a better...Ch. 4.4 - Prob. 51ECh. 4.4 - Prob. 52ECh. 4.4 - Prob. 53ECh. 4.4 - Prob. 54ECh. 4.4 - Prob. 55ECh. 4.4 - Break each code into groups of seven digits and...Ch. 4.4 - Prob. 57ECh. 4.4 - Prob. 58ECh. 4.4 - Prob. 59ECh. 4.4 - Prob. 60ECh. 4.4 - If the IP address and subnet mask for a computer...Ch. 4.4 - Prob. 62ECh. 4.4 - Prob. 63ECh. 4.4 - Prob. 64ECh. 4.4 - Prob. 65ECh. 4.4 - Prob. 66ECh. 4.4 - Prob. 67ECh. 4.4 - Prob. 68ECh. 4.4 - Prob. 69ECh. 4.4 - Prob. 70ECh. 4.4 - Prob. 71ECh. 4.4 - Prob. 72ECh. 4.4 - Prob. 73ECh. 4.4 - In our decimal system, we distinguish odd and even...Ch. 4.4 - Prob. 75ECh. 4.4 - Prob. 76ECh. 4.4 - Prob. 77ECh. 4.4 - Prob. 78ECh. 4.4 - Determine whether the given base-five numeral...Ch. 4.4 - Prob. 80ECh. 4.4 - Prob. 81ECh. 4.4 - Determine whether the given base-five numeral...Ch. 4.4 - Prob. 83ECh. 4.4 - Prob. 84ECh. 4.4 - Prob. 85ECh. 4.4 - Prob. 86ECh. 4.4 - Prob. 87ECh. 4.4 - Prob. 88ECh. 4.4 - Prob. 89ECh. 4.4 - Prob. 90ECh. 4.4 - Prob. 91ECh. 4.4 - Prob. 92ECh. 4.4 - Prob. 93ECh. 4.4 - Prob. 94ECh. 4.4 - Prob. 95ECh. 4.4 - Prob. 96ECh. 4 - In each case, identify the numeration system, and...Ch. 4 - Prob. 2TCh. 4 - Prob. 3TCh. 4 - Prob. 4TCh. 4 - Prob. 5TCh. 4 - Prob. 6TCh. 4 - Perform each operation using the alternative...Ch. 4 - Perform each operation using the alternative...Ch. 4 - Prob. 9TCh. 4 - Convert each number to base ten. 243fiveCh. 4 - Prob. 11TCh. 4 - Prob. 12TCh. 4 - Prob. 13TCh. 4 - Prob. 14TCh. 4 - Prob. 15TCh. 4 - Prob. 16TCh. 4 - Prob. 17TCh. 4 - Prob. 18TCh. 4 - Prob. 19TCh. 4 - Prob. 20TCh. 4 - Briefly explain each of the following. the...Ch. 4 - Briefly explain each of the following.
22 the...Ch. 4 - Prob. 23TCh. 4 - Briefly explain each of the following. Illustrate...
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- Please solving problem2 Problem1 We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%. (This model is the same as in Prob. 1 of HW#2).We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.arrow_forwardPlease ensure that all parts of the question are answered thoroughly and clearly. Include a diagram to help explain answers. Make sure the explanation is easy to follow. Would appreciate work done written on paper. Thank you.arrow_forwardThis question builds on an earlier problem. The randomized numbers may have changed, but have your work for the previous problem available to help with this one. A 4-centimeter rod is attached at one end to a point A rotating counterclockwise on a wheel of radius 2 cm. The other end B is free to move back and forth along a horizontal bar that goes through the center of the wheel. At time t=0 the rod is situated as in the diagram at the left below. The wheel rotates counterclockwise at 1.5 rev/sec. At some point, the rod will be tangent to the circle as shown in the third picture. A B A B at some instant, the piston will be tangent to the circle (a) Express the x and y coordinates of point A as functions of t: x= 2 cos(3πt) and y= 2 sin(3t) (b) Write a formula for the slope of the tangent line to the circle at the point A at time t seconds: -cot(3πt) sin(3лt) (c) Express the x-coordinate of the right end of the rod at point B as a function of t: 2 cos(3πt) +411- 4 -2 sin (3лt) (d)…arrow_forward
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