Homework Answers
1.
Perfect negative correlation i.e., correlation coefficient of -1
leads to the most efficient type of allocation
2.
Correlation coefficient of 0.5 is the most common type in the real
world
Add Answer to:
2. In regards to security selection and correlation, name the type of correlation that generates the...
Maggie considers four potential securities with identical expected returns as part of her asset selection decision....
Maggie considers four potential securities with identical expected returns as part of her asset selection decision. Which security and which level of dependence with the current portfolio would most likely provide Maggie with the highest diversification benefits? Security 2 with a correlation coefficient of +0.32. Security 1 with a correlation coefficient of +1.0. Security 3 with a correlation coefficient of 0.00. Security 4 with a correlation coefficient of -0.38.
Question 1 Selection: ________ A convertible security is almost always: a) a security that can be...
Question 1 Selection: ________ A convertible security is almost always: a) a security that can be converted into any other type of security. b) a debt security that can be converted into preferred shares. c) a security that can be converted into common shares at the holder's option. d) a security that can be converted into common shares at the option of the issuing corporation. Question 2 Selection: ________ Leasing is a popular form of financing because: a) lease provisions...
Which security type includes the right to vote for a board of directors? 1- Bonds 2-...
Which security type includes the right to vote for a board of directors? 1- Bonds 2- Prefered stock 3- Money market funds 4- Common stock
Regression and Correlation Methods: Correlation, ANOVA, and Least Squares This is another way of assessing the...
Regression and Correlation Methods: Correlation, ANOVA, and Least Squares This is another way of assessing the possible association between a normally distributed variable y and a categorical variable x. These techniques are special cases of linear regression methods. The purpose of the assignment is to demonstrate methods of regression and correlation analysis in which two different variables in the same sample are related. The following are three important statistics, or methodologies, for using correlation and regression: Pearson's correlation coefficient ANOVA...
What are the common myths about evolution and why are they wrong? Name and describe the...
What are the common myths about evolution and why are they wrong? Name and describe the three results of natural selection that can create changes in the percentages of alleles in a population? What are the allopatric and the sympatric speciation? Give examples of each. What are the two major types of barriers that result in reproductive isolation? Give several examples of each type that prevents the result of healthy, fertile offspring between two different species. Trace our hominid ancestor...
(2*5) Consider a market with many risky assets and a risk-free security. Asset’s returns are not...
(2*5) Consider a market with many risky assets and a risk-free security. Asset’s returns are not perfectly correlated. All the CAPM assumptions hold and the market is in equilibrium. The risk-free rate is 5%, the expected return on the market is 15%. Mr. T and Mrs. R are two investors with mean-variance utility functions and different risk-aversion coefficients. They both invest into efficient portfolios composed of the market portfolio and the risk-free security. Mr. T’s portfolio has an expected return...
Security #1 #2 Expected Return Standard Deviation Beta 0.10 0.24 0.20 1.25 0.08 0.80 hat is...
Security #1 #2 Expected Return Standard Deviation Beta 0.10 0.24 0.20 1.25 0.08 0.80 hat is the expected return of a portfolio consisting of 60% Security # 1 and 40% Security # 2? elect one: a. 8.20% b. 9.20% c. 10.20% O d. 11.20% Oe. None of the above What is the Beta of a portfolio consisting of 60% Security #1 and 40% Security #2? What is the standard deviation of a portfolio consisting of 60 % Security # 1...
please provide detailed answer thank you! E A claim is made that there is no correlation...
please provide detailed answer thank you!
E A claim is made that there is no correlation between fuel efficiency and cargo capacity in pickup trucks. A sample of 8 models of pickup trucks were ranked according to their fuel efficiency and their cargo capacity. These ranks are given in the table below. Model Fuel Efficiency Cargo Capacity А 3 6 B 8 7 с 2 1 D 6 8 E 2 F 4 3 G 4 H 5 5 1...
1. construct a scatter plot for the variables 2. compute the value of the correlation coefficient...
1. construct a scatter plot for the variables 2. compute the value of the correlation coefficient 3. give an explanation of the type nof relationship that exists between the two variables. The explanation should be a short paragraph. In this paragraph inclue the following: *say whether the is a strong positiv elinear correlation, weak positive linear correlation, strong ngative linear correlation, weak negative correlation, or no linear correlation between the two variables. *explain how you can see this from the...
For these curves: (2) What type of graph is this? 1000 Type 1 Type 2 (2)...
For these curves: (2) What type of graph is this? 1000 Type 1 Type 2 (2) What selection strategy is characterized By the top line? By the bottom line? No. survivors (n) Type 3 (3) Describe the life history of an organism that follows the Type 3 curve. Age
Security #1 #2 Expected Return Standard Deviation Beta 0.10 0.24 0.20 1.25 0.08 0.80 hat is the expected return of a portfolio consisting of 60% Security # 1 and 40% Security # 2? elect one: a. 8.20% b. 9.20% c. 10.20% O d. 11.20% Oe. None of the above What is the Beta of a portfolio consisting of 60% Security #1 and 40% Security #2? What is the standard deviation of a portfolio consisting of 60 % Security # 1...
please provide detailed answer thank you!
E A claim is made that there is no correlation between fuel efficiency and cargo capacity in pickup trucks. A sample of 8 models of pickup trucks were ranked according to their fuel efficiency and their cargo capacity. These ranks are given in the table below. Model Fuel Efficiency Cargo Capacity А 3 6 B 8 7 с 2 1 D 6 8 E 2 F 4 3 G 4 H 5 5 1...
For these curves: (2) What type of graph is this? 1000 Type 1 Type 2 (2) What selection strategy is characterized By the top line? By the bottom line? No. survivors (n) Type 3 (3) Describe the life history of an organism that follows the Type 3 curve. Age
Most questions answered within 3 hours.
-
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 35 minutes ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 2 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 2 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 2 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 2 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 2 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 2 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 2 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 2 hours ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 2 hours ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 3 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 3 hours ago