The components of two portfolios have the following random returns and corresponding probabilities: Pr &nbs
The components of two portfolios have the following random returns and corresponding probabilities:
|
Pr A/B |
Port A |
Port B |
|
Stock 0.2/ 0.25 |
5000 |
1500 |
|
Bond 0.3 /0.25 |
3000 |
2000 |
|
Treasury Bond 0.5/0.5 |
1000 |
1000 |
Estimate the correlation coefficient for both portfolios
Homework Answers
| Pr A/B | Port A | Port B |
| Stock 0.2/ 0.25 | 5,000 | 1,500 |
| Bond 0.3 /0.25 | 3,000 | 2,000 |
| Treasury Bond 0.5/0.5 | 1,000 | 1,000 |
| CORREL(B2:B4,C2:C4) | 0.50 |
Correlation between two portfolios is 0.50
50% strength of a linear relationship between two portfolios
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The components of two portfolios have the following random
returns and corresponding probabilities:
Pr &nbs
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(1)The field test data in respect of 172 components is as given below. In the life-testing of 100 specimens of a particular device, the number of failures during each time interval of twenty hours is shown in Table below. Estimate and Plot: the hazard function, failure density and reliability function. Time/Hours Failure 0-1000 59 1000-2000 24 2000-3000 3000-4000 4000-5000 5000-6000 29 30 17 13 (1) calculate the reliability of the system shown in the figure below 0.8 5 0.8 0.9...
Probability 5. The discrete random variable Z has the following probability distribution 2 0.2 4 P(Z)...
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5. The discrete random variable Z has the following probability distribution 2 0.2 4 P(Z) 0.1 0.25 0.05 0.3 Which of the following is FALSE? A) P(Z < 2) 0.55 B) P(Z 2 4)- 0.45 C) P(Z 4)=0.9 D) P(Z3)-0.05 6. A random sample of 100 first-year students was selected to determine the average GPA they achieved at a university. A 95% confidence interval for the average GPA of the first-year students was 5.2 < H < 6.8 based...
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The following ANOVA model is for a multiple regression model with two independent variables: Degrees of Sum of Mean Source Freedom Squares ...
The following ANOVA model is for a multiple regression model
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Degrees
of
Sum
of
Mean
Source
Freedom
Squares
Squares
F
Regression
2
60
Error
18
120
Total
20
180
Determine the Regression Mean Square (MSR):
Determine the Mean Square Error (MSE):
Compute the overall Fstat test statistic.
Is the Fstat significant at the 0.05 level?
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The following ANOVA model is for a multiple regression model
with two independent variables:
Degrees
of
Sum
of
Mean
Source
Freedom
Squares
Squares
F
Regression
2
60
Error
18
120
Total
20
180
Determine the Regression Mean Square (MSR):
Determine the Mean Square Error (MSE):
Compute the overall Fstat test statistic.
Is the Fstat significant at the 0.05 level?
A linear regression was run on auto sales relative to consumer
income. The Regression Sum of Squares (SSR) was 360 and...
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