Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card)
6th Edition
ISBN: 9780357191484
Author: David R. Anderson; Dennis J. Sweeney; Thomas A. Williams
Publisher: Cengage Learning US
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Chapter 5.4, Problem 30E
In addition to the information in exercise 29 on the S&P 500 and core bonds, J.P. Morgan Asset Management reported that the expected return for real estate investment trusts (REITs) was 13.07% with a standard deviation of 23.17% (J.P. Morgan Asset Management, Guide to the Markets, 1st quarter, 2012). The
- a. Using the information provided here and in exercise 29, determine the
covariance between the S&P 500 and REITs and between core bonds and REITs. - b. Construct a portfolio that is 50% invested in an S&P 500 fund and 50% invested in REITs. In percentage terms, what are the expected return and standard deviation for such a portfolio?
- c. Construct a portfolio that is 50% invested in a core bonds fund and 50% invested in REITs. In percentage terms, what are the expected return and standard deviation for such a portfolio?
- d. Construct a portfolio that is 80% invested in a core bonds fund and 20% invested in REITs. In percentage terms, what are the expected return and standard deviation for such a portfolio?
- e. which of the portfolios in parts (b), (c), and (d) would you recommend to an aggressive investor? which would you recommend to a conservative investor? why?
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The worksheet for the Drano Plumbing Company was prepared by Damon Davis. He determined that his net income was $50,000. He added up the $400,000 shortfall on his Total Financial Sheet Columns and the $300,000 credit, and then he calculated: Who is aware of the most likely explanation for this disparity? If such is the case, how should he go about locating the issue?
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Chapter 5 Solutions
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card)
Ch. 5.1 - 1. Consider the experiment of tossing a coin...Ch. 5.1 - 2. Consider the experiment of a worker assembling...Ch. 5.1 - 3. Three students scheduled interviews for summer...Ch. 5.1 - Prob. 4ECh. 5.1 - 5. To perform a certain type of blood analysis,...Ch. 5.1 - 6. Listed is a series of experiments and...Ch. 5.2 - 7. The probability distribution for the random...Ch. 5.2 - 8. The following data were collected by counting...Ch. 5.2 - 9. For unemployed persons in the United States,...Ch. 5.2 - 10. The percent frequency distributions of job...
Ch. 5.2 - 11. A technician services mailing machines at...Ch. 5.2 - 12. Time Warner Cable provides television and...Ch. 5.2 - 13. A psychologist determined that the number of...Ch. 5.2 - Prob. 14ECh. 5.3 - 15. The following table provides a probability...Ch. 5.3 - 16. The following table provides a probability...Ch. 5.3 - 17. During the summer of 2014, Coldstream Country...Ch. 5.3 - 18. The American Housing Survey reported the...Ch. 5.3 - 19. West Virginia has one of the highest divorce...Ch. 5.3 - 20. The probability distribution for damage claims...Ch. 5.3 - 21. The following probability distributions of job...Ch. 5.3 - 22. The demand for a product of Carolina...Ch. 5.3 - 23. In Gallup’s Annual Consumption Habits Poll,...Ch. 5.3 - Prob. 24ECh. 5.4 - 25. Given below is a bivariate distribution for...Ch. 5.4 - 26. A person is interested in constructing a...Ch. 5.4 - 27. The Chamber of Commerce in a Canadian city has...Ch. 5.4 - 28. PortaCom has developed a design for a...Ch. 5.4 - 29. J.P. Morgan Asset Management publishes...Ch. 5.4 - 30. In addition to the information in exercise 29...Ch. 5.5 - 31. Consider a binomial experiment with two trials...Ch. 5.5 - Prob. 32ECh. 5.5 - 33. Consider a binomial experiment with n = 20 and...Ch. 5.5 - 34. For its Music 360 survey, Nielsen Co. asked...Ch. 5.5 - 35. The Center for Medicare and Medical Services...Ch. 5.5 - 36. When a new machine is functioning properly,...Ch. 5.5 - 37. According to a 2013 study by the Pew Research...Ch. 5.5 - 38. Military radar and missile detection systems...Ch. 5.5 - 39. Market-share-analysis company Net Applications...Ch. 5.5 - 42. A Gallup Poll showed that 30% of Americans are...Ch. 5.5 - Tracked Emails. According to a 2017 Wired magazine...Ch. 5.6 - 44. Consider a Poisson distribution with μ =...Ch. 5.6 - 45. Consider a Poisson distribution with a mean of...Ch. 5.6 - 46. Phone calls arrive at the rate of 48 per hour...Ch. 5.6 - 47. During the period of time that a local...Ch. 5.6 - Prob. 48ECh. 5.6 - 49. Airline passengers arrive randomly and...Ch. 5.6 - 50. According to the National Oceanic and...Ch. 5.6 - 51. Over 500 million tweets are sent per day...Ch. 5.7 - 52. Suppose N = 10 and r = 3. Compute the...Ch. 5.7 - Prob. 53ECh. 5.7 - 54. A recent survey showed that a majority of...Ch. 5.7 - 55. Blackjack, or twenty-one as it is frequently...Ch. 5.7 - 56. Axline Computers manufactures personal...Ch. 5.7 - 57. The Zagat Restaurant Survey provides food,...Ch. 5.7 -
Suppose that a shipment of 100 boxes of apples...Ch. 5 - 59. The U.S. Coast Guard (USCG) provides a wide...Ch. 5 - 60. The Car Repair Ratings website provides...Ch. 5 - 61. The budgeting process for a midwestern college...Ch. 5 - 62. A bookstore at the Hartsfield-Jackson Airport...Ch. 5 - 63. The Knowles/Armitage (KA) group at Merrill...Ch. 5 - 64. The Pew Research Center surveyed adults who...Ch. 5 - 65. The following table shows the percentage of...Ch. 5 - Prob. 66SECh. 5 - 67. PBS News Hour reported that 39.4% of Americans...Ch. 5 - Prob. 68SECh. 5 - Arrivals to a Car Wash. Cars arrive at a car wash...Ch. 5 - Prob. 70SECh. 5 - Prob. 71SECh. 5 - Prob. 72SECh. 5 - Great Grasslands Grains, Inc. (GGG) manufactures...Ch. 5 - Harriet McNeil, proprietor of McNeil’s Auto Mall,...Ch. 5 -
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- As of the time of writing, Damon Davis was completing out the paperwork for Drano Plumbing. He estimated a $50,000 net profit would be made. He counted the columns of the balance sheet and knew how much was in the credit column ($300,000) and how much was in the negative column ($400,000). What, in your opinion, was the most plausible reason for the discrepancy in the results? What should he do next to identify the issue's cause if this wasn't the cause of the issue?arrow_forwardDamon Davis was finalising Drano Plumbing's paperwork. He projected a $50,000 net profit. When he added up the columns on the Balance Sheet, he saw that the debit column amounted to $400,000 and the credit column amounted to $300,000. What was the most probable cause of the outcome discrepancy? If this was not the cause of the issue, how should he proceed to ascertain its origin?arrow_forwardUse the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $200 per visit, the frequency of repurchase is 7 times per year, the contribution margin is 23 percent, and the average customer defection rate is 19 percent?arrow_forward
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- An EMPLOYEE has only one JOB_CODE, but a JOB_CODE can be held by many EMPLOYEEs. An EMPLOYEE can participate in many PLANs, and any PLAN can be assigned to many EMPLOYEEs. Note also that the M:N relationship has been broken down into two 1:M relationships for which the BENEFIT table serves as the composite or bridge entity. Question: Create the ERD to show the relationships among EMPLOYEE, BENEFIT, JOB, and PLAN.arrow_forwardDamon Davis was finalizing the paperwork for Drano Plumbing. He projected a net profit of $50,000. When he added up the columns on the Balance Sheet, he saw that the debit column was equivalent to $400,000 and the credit column was equal to $300,000. Which of the following was the most probable explanation for the mismatch in results? If this was not the cause of the issue, what should he undertake to ascertain its origin?arrow_forwardDrano Plumbing Company's worksheet was being prepared by Damon Davis. He estimated a net income of $50,000. When he tallied the columns on the Balance Sheet, the totals were $400,000 for debit and $300,000 for credit. What was the most likely reason for this discrepancy? What should he do if this wasn't the source of the problem?arrow_forward
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