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Use the following information to answer questions 7 - 8: The Old Folks Tour Bus drives...
For this and the next 4 questions: Please use the following data to answer the questions that follow. You may copy over the data to Excel and use spreadsheet functions to perform the required analyses. 1. Calculate the covariance between the Market and Stock A. 2. Calculate the COVARIANCE BETWEEN STOCK B AND MARKET. 3. What is the VARIANCE OF STOCK A? 4. What is the STANDARD DEVIATION OF THE MARKET? Year Market Stock A Stock B 1 -0.10 -0.17...
Please show how did you came up with the answer, show formulas and work. Also, please do Parts e to i. Thank you so much 1. Consider the following probability mass function for the discrete joint probability distribution for random variables X and Y where the possible values for X are 0, 1, 2, and 3; and the possible values for Y are 0, 1, 2, 3, and 4. p(x,y) <0 3 0 4 0.01 0 0 0.10 0.05 0.15...
For this and the next 4 questions: Please use the following data to answer the questions that follow. You may copy over the data to Excel and use spreadsheet functions to perform the required analyses. Calculate the covariance between the Market and Stock A. Be sure to correct for sample. Year Market Stock A Stock B 1 -0.10 -0.17 0.057 2 0.08 0.20 0.057 3 0.05 0.10 0.057 4 0.15 0.25 0.057 5 0.06 0.07 0.057 0.0145 -0.00268 0.0000 0.976...
plz solve complete question, all parts. B 12-8 (book/static) Question Help Stocks A and B have the following returns: 1 2 3 4 5 Stock A 0.10 0.07 0.15 -0.05 0.08 Stock B 0.06 0.02 0.05 0.01 -0.02 a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70%...
Consider the following information: Rate of Return if State Occurs State of Economy Boom Good Poor Bust Probability of State of Economy 0.10 0.60 0.25 0.05 Stock A 0.34 0.19 - 0.01 - 0.15 Stock B 0.44 0.15 - 0.09 - 0.19 Stock 0.24 0.08 - 0.07 - 0.11 a. Your portfolio is invested 25 percent each in A and C, and 50 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal...
Use the following information to answer the next seven questions. Suppose there are three potential states of the economy for next year: good, normal, and bad. Each state has equal probability to occur, that is, the probability is 1/3 for all of them. Returns of asset A and B in each state are given in the following table. good normal bad A 0.20 0.08 -0.01 B 0.15 0.10 -0.04 1. Find out the expected return of a portfolio with equal...
For the following distribution, what is the probability, P(X > 6)? Express the answer as a decimal number (for example, 0.5, not 1/2 or 50%). x 3 4 5 6 7 8 P(X = x) 0.15 0.20 0.20 0.25 0.10 0.10
9. Use the information in the table below to answer the following question. Suppose you have collected demographic information about households in your local area. The following table is the joint probability density function for the number of children under the age of 18 living in the household and the marriage status of the adult taking the survey. Marriage Status/# of Children Single Married 0 2 3 0.20 0.1 0.10 0.3 0.05 0.25 0.04 0.03 0.01 0.02 Using the above...
Please answer both questions. Will Rate!! An automobile service facility specializing the next car to be tuned engine tune-ups knows that 50 % of all tune-ups are done on four-cylinder automobiles, 35% on six-cylinder automobiles, and 15% on eight-cylinder automobiles. Let J the number of cylinders (a) What is the pmf of X7 P(x) line araph for the pmf of part (a). (b) Draw Probability Probability 0.5 0.45 0.4 035 0.3 0.5 045 0.4 О35 0.3 0.25 0.25 0.2 0.2...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.35 0.21 0.34 0.26 Good 0.25 0.11 0.23 0.08 Poor 0.30 –0.02 –0.10 –0.03 Bust 0.10 –0.10 –0.18 –0.10 a. Your portfolio is invested 35 percent each in A and C and 30 percent in B. What is the expected return of the portfolio? (Do not round intermediate calculations. Enter your answer as a percent...