MATHEMATICS A PRACT ODYSSEY -WEBASSIGN
8th Edition
ISBN: 9780357425831
Author: Johnson
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 8.1, Problem 12E
In Exercises
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas.
Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars)
are as follows.
From
To
Hamilton Butler
Clermont
Southern Gas
10
20
15
Northwest Gas
12
15
18
(a) Develop a network representation of this problem. (Submit a file with a maximum size of 1 MB.)
Choose File No file chosen
Assignment 3 graph.docx
Score: 1 out of 1
Comment:
(b) Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs (in thousands of…
Use the method of undetermined coefficients to solve the given nonhomogeneous system.
dx
dt
=
2x + 3y − 8
dy
dt
=
−x − 2y + 6
X(t) =
As discussed in Section 8.3, the Markowitz model uses the variance of the portfolio as the measure of risk. However, variance includes deviations both below and above the mean return. Semivariance includes only deviations below the mean and is considered by many to be a better measure of risk.
(a)
Develop a model that minimizes semivariance for the Hauck Financial data given in the file HauckData with a required return of 10%.
Assume
that the five planning scenarios in the Hauck Financial Services model are equally likely to occur. Hint: Modify model (8.10)–(8.19). Define a variable ds for each scenario and let
ds ≥ R − Rs
with
ds ≥ 0.
Then make the objective function:
Min
1
5
5
s = 1
ds2.
Let
FS = proportion of portfolio invested in the foreign stock mutual fund
IB = proportion of portfolio invested in the intermediate-term bond fund
LG = proportion of portfolio invested in the large-cap growth fund
LV = proportion of portfolio invested in the large-cap value fund…
Chapter 8 Solutions
MATHEMATICS A PRACT ODYSSEY -WEBASSIGN
Ch. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - Prob. 4ECh. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - When necessary, round off answers to one decimal...Ch. 8.1 - In Exercise 9 and 10, find a the area and b the...Ch. 8.1 - Prob. 10E
Ch. 8.1 - Prob. 11ECh. 8.1 - In Exercises 1120, find (a) the area and (b) the...Ch. 8.1 - In Exercises 1120, find (a) the area and (b) the...Ch. 8.1 - In Exercises 1120 find(a) the area and (b) the...Ch. 8.1 - In Exercises 1120, find (a) the area and (b) the...Ch. 8.1 - In Exercises 1120, find (a) the area and (b) the...Ch. 8.1 - Prob. 17ECh. 8.1 - In Exercises 1120 find a the area and b the...Ch. 8.1 - In Exercises 1120 find a the area and b the...Ch. 8.1 - In Exercises 1120 find a the area and b the...Ch. 8.1 - In Exercises 21 and 22, find (a) the area and (b)...Ch. 8.1 - Prob. 22ECh. 8.1 - A circular swimming pool has diameter 50ft and is...Ch. 8.1 - A rectangular swimming pool 30feet by 15feet is...Ch. 8.1 - Prob. 25ECh. 8.1 - Prob. 26ECh. 8.1 - Prob. 27ECh. 8.1 - Prob. 28ECh. 8.1 - You jog 34 mile due north, then 112 miles due...Ch. 8.1 - You walk 100 yards due south, then 120 yards due...Ch. 8.1 - A 10-foot ladder leans against a wall. If the base...Ch. 8.1 - Prob. 32ECh. 8.1 - Prob. 33ECh. 8.1 - Prob. 34ECh. 8.1 - The length of the edges of a triangular canvas are...Ch. 8.1 - Jim Mulios wants to fertilize his backyard. The...Ch. 8.1 - Reddies Pizza Bash is famous for its Loads-o-Meat...Ch. 8.1 - Prob. 38ECh. 8.1 - Prob. 39ECh. 8.1 - Prob. 40ECh. 8.1 - Prob. 41ECh. 8.1 - In Exercise3944, use the following information: in...Ch. 8.1 - Prob. 43ECh. 8.1 - Prob. 44ECh. 8.1 - Prob. 45ECh. 8.1 - Prob. 46ECh. 8.1 - Prob. 47ECh. 8.1 - Prob. 48ECh. 8.1 - Prob. 49ECh. 8.1 - Prob. 50ECh. 8.1 - Prob. 51ECh. 8.1 - Prob. 52ECh. 8.1 - Prob. 53ECh. 8.1 - Prob. 54ECh. 8.1 - Prob. 55ECh. 8.1 - Prob. 56ECh. 8.1 - Prob. 57ECh. 8.1 - Prob. 58ECh. 8.1 - Prob. 59ECh. 8.2 - When necessary, round off answers to two decimal...Ch. 8.2 - When necessary, round off answers to two decimal...Ch. 8.2 - When necessary, round off answers to two decimal...Ch. 8.2 - When necessary, round off answers to two decimal...Ch. 8.2 - Prob. 5ECh. 8.2 - When necessary, round off answers to two decimal...Ch. 8.2 - Prob. 7ECh. 8.2 - In Exercises714, find the volume of each figure....Ch. 8.2 - In Exercises714, find the volume of each figure....Ch. 8.2 - In Exercises714, find the volume of each figure....Ch. 8.2 - In Exercises714, find the volume of each figure....Ch. 8.2 - In Exercises714, find the volume of each figure....Ch. 8.2 - Prob. 13ECh. 8.2 - Prob. 14ECh. 8.2 - From a 10-inch-by-16-inch piece of cardboard,...Ch. 8.2 - From a 24-inch-square piece of cardboard, square...Ch. 8.2 - A grain silo consists of a cylinder with a...Ch. 8.2 - A propane gas tank consists of a cylinder with a...Ch. 8.2 - A regulation baseball hardball has a circumference...Ch. 8.2 - A regulation tennis ball has a diameter of 212...Ch. 8.2 - The diameter of the earth is approximately 7, 920...Ch. 8.2 - The diameter of the earth is approximately 7, 920...Ch. 8.2 - Prob. 23ECh. 8.2 - Prob. 24ECh. 8.2 - In Exercises 25 and 26, use the following...Ch. 8.2 - Prob. 26ECh. 8.2 - Prob. 27ECh. 8.2 - Golf balls are packaged three to a rectangular...Ch. 8.2 - Prob. 29ECh. 8.2 - Marcus Robinson bought an older house and wants to...Ch. 8.2 - Prob. 31ECh. 8.2 - The student union at the University of Utopia U2...Ch. 8.2 - A water storage tank is an upside-down cone, as...Ch. 8.2 - The diameter of a conical paper cup is 3.5inches....Ch. 8.2 - Prob. 35ECh. 8.2 - Prob. 36ECh. 8.2 - Prob. 37ECh. 8.2 - Prob. 38ECh. 8.2 - Prob. 39ECh. 8.2 - Prob. 40ECh. 8.2 - Prob. 41ECh. 8.2 - Prob. 42ECh. 8.2 - Prob. 43ECh. 8.3 - In Exercises 1-4. determine whether each...Ch. 8.3 - Prob. 2ECh. 8.3 - Prob. 3ECh. 8.3 - Prob. 4ECh. 8.3 - Prob. 5ECh. 8.3 - Prob. 6ECh. 8.3 - Prob. 7ECh. 8.3 - Prob. 8ECh. 8.3 - Following the method of Problem 48 of the Rhind...Ch. 8.3 - Prob. 10ECh. 8.3 - Prob. 11ECh. 8.3 - Prob. 12ECh. 8.3 - Prob. 13ECh. 8.3 - Prob. 14ECh. 8.3 - Prob. 15ECh. 8.3 - Prob. 16ECh. 8.3 - Find the perimeter of a triangle having sides with...Ch. 8.3 - Prob. 18ECh. 8.3 - Prob. 19ECh. 8.3 - Prob. 20ECh. 8.3 - Prob. 21ECh. 8.3 - Prob. 22ECh. 8.3 - Prob. 23ECh. 8.3 - Prob. 24ECh. 8.3 - Problem 41 of the Rhind Papyrus pertains to...Ch. 8.3 - Prob. 26ECh. 8.3 - Prob. 27ECh. 8.3 - Prob. 28ECh. 8.3 - Prob. 29ECh. 8.3 - Prob. 30ECh. 8.4 - In Exercises 1-4, the given triangles are similar....Ch. 8.4 - In Exercises 1-4, the given triangles are similar....Ch. 8.4 - In Exercises 1-4, the given triangles are similar....Ch. 8.4 - In Exercises 1-4, the given triangles are similar....Ch. 8.4 - A 6-foot-tall man casts a shadow of 3.5 feet at...Ch. 8.4 - Prob. 6ECh. 8.4 - Prob. 7ECh. 8.4 - Use Figure 8.67 and the method of rearrangement to...Ch. 8.4 - Find the length of the longest object that will...Ch. 8.4 - Find the length of the longest object that will...Ch. 8.4 - Find the length of the longest object that will...Ch. 8.4 - Find the length of the longest object that will...Ch. 8.4 - Prob. 13ECh. 8.4 - Prob. 14ECh. 8.4 - In Exercises 1318, use the two column method to...Ch. 8.4 - Prob. 16ECh. 8.4 - Prob. 17ECh. 8.4 - Prob. 18ECh. 8.4 - Prob. 19ECh. 8.4 - Prob. 20ECh. 8.4 - Prob. 21ECh. 8.4 - Prob. 22ECh. 8.4 - If a sphere is inscribed in a cylinder, the...Ch. 8.4 - Prob. 24ECh. 8.4 - Prob. 25ECh. 8.4 - Prob. 26ECh. 8.4 - Prob. 27ECh. 8.4 - Prob. 28ECh. 8.4 - Prob. 29ECh. 8.4 - The purpose of this project is to calculate the...Ch. 8.4 - Prob. 31ECh. 8.4 - Prob. 32ECh. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - In Exercises 18, use trigonometric ratios to find...Ch. 8.5 - Prob. 8ECh. 8.5 - In Exercises 926. use the given information to...Ch. 8.5 - Prob. 10ECh. 8.5 - Prob. 11ECh. 8.5 - Prob. 12ECh. 8.5 - Prob. 13ECh. 8.5 - Prob. 14ECh. 8.5 - Prob. 15ECh. 8.5 - Prob. 16ECh. 8.5 - Prob. 17ECh. 8.5 - Prob. 18ECh. 8.5 - Prob. 19ECh. 8.5 - Prob. 20ECh. 8.5 - Prob. 21ECh. 8.5 - Prob. 22ECh. 8.5 - Prob. 23ECh. 8.5 - Prob. 24ECh. 8.5 - Prob. 25ECh. 8.5 - Prob. 26ECh. 8.5 - A cable runs from the top of a building to a point...Ch. 8.5 - A support cable runs from the top of a telephone...Ch. 8.5 - Prob. 29ECh. 8.5 - Prob. 30ECh. 8.5 - Prob. 31ECh. 8.5 - Prob. 32ECh. 8.5 - Prob. 33ECh. 8.5 - Prob. 34ECh. 8.5 - A billboard is on top of a building. You are 125.0...Ch. 8.5 - Prob. 36ECh. 8.5 - You are hiking along a river and see a tall tree...Ch. 8.5 - Prob. 38ECh. 8.5 - Prob. 39ECh. 8.5 - Prob. 40ECh. 8.5 - Prob. 41ECh. 8.5 - Prob. 42ECh. 8.5 - Prob. 43ECh. 8.5 - Two observers are 500feet apart. Each measures the...Ch. 8.5 - Prob. 45ECh. 8.5 - Prob. 46ECh. 8.5 - Prob. 47ECh. 8.5 - Prob. 48ECh. 8.5 - Prob. 49ECh. 8.5 - Prob. 50ECh. 8.5 - Prob. 51ECh. 8.5 - Prob. 52ECh. 8.5 - Prob. 53ECh. 8.6 - Prob. 1ECh. 8.6 - Prob. 2ECh. 8.6 - Prob. 3ECh. 8.6 - In Exercise 1-4, answer the following questions....Ch. 8.6 - Prob. 5ECh. 8.6 - Prob. 6ECh. 8.6 - Prob. 7ECh. 8.6 - Prob. 8ECh. 8.6 - Prob. 9ECh. 8.6 - Prob. 10ECh. 8.6 - In Exercises 11-20, answer the following...Ch. 8.6 - Prob. 12ECh. 8.6 - Prob. 13ECh. 8.6 - Prob. 14ECh. 8.6 - Prob. 15ECh. 8.6 - Prob. 16ECh. 8.6 - Prob. 17ECh. 8.6 - Prob. 18ECh. 8.6 - Prob. 19ECh. 8.6 - In Exercises 11-20, answer the following...Ch. 8.6 - Prob. 21ECh. 8.6 - Prob. 22ECh. 8.6 - Prob. 23ECh. 8.6 - Prob. 24ECh. 8.6 - Prob. 25ECh. 8.7 - Prob. 1ECh. 8.7 - Prob. 2ECh. 8.7 - Prob. 3ECh. 8.7 - Prob. 4ECh. 8.7 - Prob. 5ECh. 8.7 - Prob. 6ECh. 8.7 - Prob. 7ECh. 8.7 - Prob. 8ECh. 8.7 - Prob. 9ECh. 8.7 - Prob. 10ECh. 8.7 - Prob. 11ECh. 8.7 - Prob. 12ECh. 8.7 - Prob. 13ECh. 8.7 - A satellite dish antenna has a parabolic reflector...Ch. 8.7 - Prob. 15ECh. 8.7 - Prob. 16ECh. 8.7 - Prob. 17ECh. 8.7 - In Exercises 17-24, sketch the graph and find the...Ch. 8.7 - Prob. 19ECh. 8.7 - Prob. 20ECh. 8.7 - Prob. 21ECh. 8.7 - Prob. 22ECh. 8.7 - Prob. 23ECh. 8.7 - Prob. 24ECh. 8.7 - Prob. 25ECh. 8.7 - Prob. 26ECh. 8.7 - Prob. 27ECh. 8.7 - Prob. 28ECh. 8.7 - Prob. 29ECh. 8.7 - In Exercises 29-36, sketch the graph and find the...Ch. 8.7 - Prob. 31ECh. 8.7 - Prob. 32ECh. 8.7 - Prob. 33ECh. 8.7 - Prob. 34ECh. 8.7 - Prob. 35ECh. 8.7 - Prob. 36ECh. 8.7 - Prob. 37ECh. 8.7 - Prob. 38ECh. 8.8 - Prob. 1ECh. 8.8 - Prob. 2ECh. 8.8 - Prob. 3ECh. 8.8 - Prob. 4ECh. 8.8 - Prob. 5ECh. 8.8 - Prob. 6ECh. 8.8 - Prob. 7ECh. 8.8 - Prob. 8ECh. 8.8 - In Exercises 7-12, answer the questions for the...Ch. 8.8 - Prob. 10ECh. 8.8 - Prob. 11ECh. 8.8 - Prob. 12ECh. 8.8 - Prob. 13ECh. 8.8 - Prob. 14ECh. 8.8 - Prob. 15ECh. 8.8 - Prob. 16ECh. 8.8 - Prob. 17ECh. 8.8 - Prob. 18ECh. 8.8 - Prob. 19ECh. 8.8 - What was the scandal of elementary geometry?Ch. 8.8 - Prob. 21ECh. 8.8 - Who was the first mathematician to affirm the...Ch. 8.8 - Prob. 23ECh. 8.8 - Prob. 24ECh. 8.8 - Prob. 25ECh. 8.8 - Prob. 26ECh. 8.8 - Prob. 27ECh. 8.9 - HANDS ON The Sierpinski gasket Using a...Ch. 8.9 - The Sierpinski carpet. The Sierpinski carpet is...Ch. 8.9 - The Mitsubishi gasket. Carefully and accurately...Ch. 8.9 - The square snowflake. Carefully and accurately...Ch. 8.9 - Prob. 5ECh. 8.9 - Prob. 6ECh. 8.9 - Prob. 7ECh. 8.9 - Prob. 8ECh. 8.9 - Prob. 9ECh. 8.9 - Find the approximate dimension of the Sierpinski...Ch. 8.9 - Find the approximate dimension of the Mitsubishi...Ch. 8.9 - Prob. 12ECh. 8.9 - Find the approximate dimension of the square...Ch. 8.9 - Prob. 14ECh. 8.9 - Prob. 15ECh. 8.9 - Prob. 16ECh. 8.9 - Prob. 17ECh. 8.9 - Prob. 18ECh. 8.9 - Prob. 19ECh. 8.9 - Prob. 20ECh. 8.9 - Prob. 21ECh. 8.9 - 22. Describe the self-similarity of the given...Ch. 8.9 - Prob. 23ECh. 8.9 - Prob. 24ECh. 8.9 - Prob. 25ECh. 8.9 - Name three naturally occurring objects other than...Ch. 8.9 - Prob. 27ECh. 8.9 - Prob. 28ECh. 8.9 - Prob. 29ECh. 8.9 - Prob. 30ECh. 8.9 - Prob. 31ECh. 8.9 - Prob. 32ECh. 8.9 - Prob. 33ECh. 8.9 - Prob. 35ECh. 8.9 - Prob. 36ECh. 8.10 - Prob. 1ECh. 8.10 - Prob. 2ECh. 8.10 - Finding the perimeter of a Sierpinski carpet. See...Ch. 8.10 - Finding the area of a Sierpinski carpet. See...Ch. 8.10 - Prob. 5ECh. 8.10 - A square snowflake. See Exercise 4 in Section 8.9...Ch. 8.10 - Prob. 7ECh. 8.10 - Prob. 8ECh. 8.10 - Describe an application of fractal area,...Ch. 8.10 - Design your own fractal. Discuss its...Ch. 8.CR - Prob. 1CRCh. 8.CR - Prob. 2CRCh. 8.CR - Prob. 3CRCh. 8.CR - Prob. 4CRCh. 8.CR - Prob. 5CRCh. 8.CR - Saturn the ringed planet revolves around the sun...Ch. 8.CR - Prob. 7CRCh. 8.CR - Prob. 8CRCh. 8.CR - Prob. 9CRCh. 8.CR - Prob. 10CRCh. 8.CR - Find the volume and surface area of Figure 8.194.Ch. 8.CR - Prob. 12CRCh. 8.CR - Prob. 13CRCh. 8.CR - An oval athletic field is the combination of a...Ch. 8.CR - From a 12inch-by-18inch piece of cardboard,...Ch. 8.CR - A regulation baseball hardball has a circumference...Ch. 8.CR - Prob. 17CRCh. 8.CR - Prob. 18CRCh. 8.CR - Prob. 19CRCh. 8.CR - Prob. 20CRCh. 8.CR - Prob. 21CRCh. 8.CR - Prob. 22CRCh. 8.CR - Prob. 23CRCh. 8.CR - Find the length of the longest object that will...Ch. 8.CR - Prob. 25CRCh. 8.CR - Prob. 26CRCh. 8.CR - In Exercise 26 and 27, use the two-column method...Ch. 8.CR - Prob. 28CRCh. 8.CR - A regular dodecagon 12-sided polygon is inscribed...Ch. 8.CR - Prob. 30CRCh. 8.CR - Prob. 31CRCh. 8.CR - Prob. 32CRCh. 8.CR - Prob. 33CRCh. 8.CR - Prob. 34CRCh. 8.CR - Prob. 35CRCh. 8.CR - Prob. 36CRCh. 8.CR - Prob. 37CRCh. 8.CR - Prob. 38CRCh. 8.CR - Prob. 39CRCh. 8.CR - Prob. 40CRCh. 8.CR - Prob. 41CRCh. 8.CR - Prob. 42CRCh. 8.CR - Prob. 43CRCh. 8.CR - Prob. 44CRCh. 8.CR - The box fractal. To create this shape, use the...Ch. 8.CR - Prob. 46CRCh. 8.CR - Prob. 47CRCh. 8.CR - Prob. 48CRCh. 8.CR - Draw a building in two-point perspective. viewed...Ch. 8.CR - Prob. 50CRCh. 8.CR - Prob. 51CRCh. 8.CR - Prob. 52CRCh. 8.CR - Prob. 53CR
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Calculus lll May I please have the blank lines completed, and final statement defined as a result? Thank you for the support!arrow_forwardFor each month of the year, Taylor collected the average high temperatures in Jackson, Mississippi. He used the data to create the histogram shown. Which set of data did he use to create the histogram? A 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92\ 55,\ 60,\ 64,\ 72,\ 73,\ 75,\ 77,\ 81,\ 83,\ 91,\ 91,\ 92 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92 B 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91\ 55,\ 57,\ 60,\ 65,\ 70,\ 71,\ 78,\ 79,\ 85,\ 86,\ 88,\ 91 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91 C 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93\ 55,\ 60,\ 63,\ 64,\ 65,\ 71,\ 83,\ 87,\ 88,\ 88,\ 89,\ 93 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93 D 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91\ 55,\ 58,\ 60,\ 66,\ 68,\ 75,\ 77,\ 82,\ 86,\ 89,\ 91,\ 91 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forward
- Problem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forwardThe Course Name Real Analysis please Solve questions by Real Analysisarrow_forwardWe consider a 4-dimensional stock price model given (under P) by dẴ₁ = µ· Xt dt + йt · ΣdŴt where (W) is an n-dimensional Brownian motion, π = (0.02, 0.01, -0.02, 0.05), 0.2 0 0 0 0.3 0.4 0 0 Σ= -0.1 -4a За 0 0.2 0.4 -0.1 0.2) and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02. (a) Give a condition on a that would make stock #3 be the one with largest volatility. (b) Find the diversification coefficient for this portfolio as a function of a. (c) Determine the maximum diversification coefficient d that you could reach by varying the value of a? 2arrow_forward
- Question 1. Your manager asks you to explain why the Black-Scholes model may be inappro- priate for pricing options in practice. Give one reason that would substantiate this claim? Question 2. We consider stock #1 and stock #2 in the model of Problem 2. Your manager asks you to pick only one of them to invest in based on the model provided. Which one do you choose and why ? Question 3. Let (St) to be an asset modeled by the Black-Scholes SDE. Let Ft be the price at time t of a European put with maturity T and strike price K. Then, the discounted option price process (ert Ft) t20 is a martingale. True or False? (Explain your answer.) Question 4. You are considering pricing an American put option using a Black-Scholes model for the underlying stock. An explicit formula for the price doesn't exist. In just a few words (no more than 2 sentences), explain how you would proceed to price it. Question 5. We model a short rate with a Ho-Lee model drt = ln(1+t) dt +2dWt. Then the interest rate…arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forward3. Consider the polynomial equation 6-iz+7z² - iz³ +z = 0 for which the roots are 3i, -2i, -i, and i. (a) Verify the relations between this roots and the coefficients of the polynomial. (b) Find the annulus region in which the roots lie.arrow_forward
- The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Part 2 b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. B. It is not appropriate to interpret b 0b0, because its value…arrow_forward3. Consider the polynomial equation 6-iz+7z2-iz³ +z = 0 for which the roots are 3i, -2i, -i, and i. (a) Verify the relations between this roots and the coefficients of the polynomial. (b) Find the annulus region in which the roots lie.arrow_forwardWrite the equation of the trigonometric function shown in the graph. LO 5 4 3 2 1 y -5 -5 4 8 8 500 -1 -2 -3 -4 -5 x 5 15л 5л 25л 15л 35π 5л 4 8 2 8 4 8arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Elementary Geometry For College Students, 7eGeometryISBN:9781337614085Author:Alexander, Daniel C.; Koeberlein, Geralyn M.Publisher:Cengage,
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Algebra: Structure And Method, Book 1AlgebraISBN:9780395977224Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. ColePublisher:McDougal Littell
Trigonometry (MindTap Course List)TrigonometryISBN:9781337278461Author:Ron LarsonPublisher:Cengage Learning
Elementary Geometry For College Students, 7e
Geometry
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Cengage,
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Algebra: Structure And Method, Book 1
Algebra
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:McDougal Littell
Trigonometry (MindTap Course List)
Trigonometry
ISBN:9781337278461
Author:Ron Larson
Publisher:Cengage Learning
An Introduction to Area | Teaching Maths | EasyTeaching; Author: EasyTeaching;https://www.youtube.com/watch?v=_uKKl8R1xBM;License: Standard YouTube License, CC-BY
Area of a Rectangle, Triangle, Circle & Sector, Trapezoid, Square, Parallelogram, Rhombus, Geometry; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=JnLDmw3bbuw;License: Standard YouTube License, CC-BY