Homework Answers
| Month | Return of stock A, x | Return of market,y |
 |
 |
 |
| 1 | 2.30 | 1.30 | 0.06 | -0.72 | -0.0432 |
| 2 | 2.50 | 5.00 | 0.26 | 2.98 | 0.7748 |
| 3 | 1.90 | 0.80 | -0.34 | -1.22 | 0.4148 |
| 4 | 2.40 | 1.90 | 0.16 | -0.12 | -0.0192 |
| 5 | 2.10 | 1.10 | -0.14 | -0.92 | 0.1288 |
 |
11.20 | 10.10 | 1.26 |
Mean x is given by
Covariance is given by
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1.3 Month Return of Stock A Return of Market Index 2.3 2.5...
Given the following return information, what are the variance and standard deviation of stock A and...
Given the following return information, what are the variance and standard deviation of stock A and return of the market index? Month Return of Stock A Return of Market 2 3 4 5 2.3 2.5 1.9 2.4 2.1 Index (%) 1.3 5.0 0.8 1.9 1.1 Using the table and your calculations from above, calculate the covariance and correlation of Stock A's returns and the return of the market index
Recent research indicates that the effectiveness of antidepressant medication is directly related to the severity of...
Recent research indicates that the effectiveness of antidepressant medication is directly related to the severity of the depression (Khan, Brodhead, Kolts & Brown, 2005). Based on pretreatment depression scores, patients were divided into four groups based on their level of depression. After receiving the antidepressant medication, depression scores were measured again and the amount of improvement was recorded for each patient. The following data are similar to the results of the study. Low Moderate High Moderate Moderately Severe Severe 1.2...
Question 3 of 4 (1 point) 2.3 Section Exercise 19 The following table presents amounts of...
Question 3 of 4 (1 point) 2.3 Section Exercise 19 The following table presents amounts of particulate emissions for 50 vehicles. Construct a split stem-and-leaf plot in which each stem appears twice, once for leaves 0-4 and again for leaves Chec 5-9. Use the digits 0, 1, 2,3, 4, 5, and 6 as the stems. For each stem, arrange its leaves in increasing order. Do not separate the answers with comma. If there are no leaves, enter "N". Guide 6.6...
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37. You are recalculating the risk of ACE stock in relation to the market index, and you find that the ratio of the systematic variance to the total variance has risen. You must also find that the A. covariance between ACE and the market has fallen B. correlation coefficient between ACE and the market has fallen C. correlation coefficient between ACE and the market has risen D.unsystematic risk of ACE has risen
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Given the following return information, what are the variance and standard deviation of stock A and return of the market index? Month Return of Stock A Return of Market 2 3 4 5 2.3 2.5 1.9 2.4 2.1 Index (%) 1.3 5.0 0.8 1.9 1.1 Using the table and your calculations from above, calculate the covariance and correlation of Stock A's returns and the return of the market index
Question 3 of 4 (1 point) 2.3 Section Exercise 19 The following table presents amounts of particulate emissions for 50 vehicles. Construct a split stem-and-leaf plot in which each stem appears twice, once for leaves 0-4 and again for leaves Chec 5-9. Use the digits 0, 1, 2,3, 4, 5, and 6 as the stems. For each stem, arrange its leaves in increasing order. Do not separate the answers with comma. If there are no leaves, enter "N". Guide 6.6...
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The multiplier for a futures contract on a stock market index is $70. The maturity of the contract is 1 year, the current level of the index is 1,840, and the risk-free interest rate is 0.8% per month. The dividend yield on the index is 0.3% per month. Suppose that after 1 month, the stock index is at 1,860. a. Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. (Do...
A sociologist claims that children spent more time watching television in 1981 than children do today. A study was conducted in 1981 to find the time that children watched television on weekdays. Recently, a similar study was conducted. The results of these studies (in hours per weekday are shown below. Assume the population standard deviation is 0.7 for 1981 and 0.8 for today, At a = 0.05, can you support the sociologist's claim? Complete parts (a) through (d) below. Full...
37. You are recalculating the risk of ACE stock in relation to the market index, and you find that the ratio of the systematic variance to the total variance has risen. You must also find that the A. covariance between ACE and the market has fallen B. correlation coefficient between ACE and the market has fallen C. correlation coefficient between ACE and the market has risen D.unsystematic risk of ACE has risen
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