Problem Set 2 - Solution Notes 1. First‚ compute the correlation coefficient between assets A and B ρ(RA ‚ RB ) = Cov (RA ‚ RB ) −0.0322 = = −1. σ (RA )σ (RB ) 0.14 × 0.23 The assets are perfectly negatively correlated. Consider portfolio P formed from assets A and B such that you invest α fraction of your wealth into A and (1 − α) fraction into B. The variance of such portfolio is σ (RP )2 = = = = α2 σ (RA )2 + (1 − α)2 σ (RB )2 + 2α(1 − α)Cov (RA ‚ RB ) α2 σ (RA )2 + (1 −
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Week 2 Text Problem Set Candy Wungnema FIN/571 February 5‚ 2013 Kathleen O’Keefe Week 2 Text Problem Set Chapter 5 4. Define the following terms: bond indenture‚ par value‚ principal‚ maturity‚ call provision‚ and sinking fund. • Bond indenture: A contract for a bond defining specified terms for interest and borrowed capital to be repaid to the lender. • Par value: “Specifies the amount of money that must be repaid at the end of the bond’s life‚ which is also called face value
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MANAGEMENT THROUGH STRATEGIC MANAGEMENT PROCESS ABSTRACT Knowledge Management (KM) is the key factor for the organizational success and survival. In the competitive business environments‚ knowledge management involve strategic management processes. The processes consist of formulating stages‚ implementation stages‚ and controlling stages. With a systematic strategic management approach‚ organizations are able to generate competitive advantage and achieve organizational objectives. This paper provides
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“Why I Joined Dream Job” 300+ students’ uncensored reasons As part of the enrollment process‚ I ask every Dream Job student why they enrolled. I’ve already showed you why my previous Earn1K and Find Your First Profitable Idea students signed up for Dream Job when I gave them early access to the course. Since then‚ hundreds of others have joined. I thought you might like to see their reasons for investing in this course and in themselves. The comments are unedited and uncensored‚ except to remove
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a. Name of dataset Data Set 14: Coin Weights (grams) b. What does each observation (row) in the dataset represent? Each observation (row) represents what type of coin was used and pre/post years. Here we have the Indian pennies‚wheat pennies‚ pre 1983‚post 1983‚ Canadian pennies‚pre 1964 quarters‚ post 1964 quarters‚ and dollar coins. c. Give the name of one qualitative variable and one quantitative variable from the data set. Note: Your dataset may not have both types (if it does not‚ please
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Vandenberghe January 4‚ 2006 Chapter 2 Convex sets Exercises Exercises Definition of convexity 2.1 Let C ⊆ Rn be a convex set‚ with x1 ‚ . . . ‚ xk ∈ C‚ and let θ1 ‚ . . . ‚ θk ∈ R satisfy θi ≥ 0‚ θ1 + · · · + θk = 1. Show that θ1 x1 + · · · + θk xk ∈ C. (The definition of convexity is that this holds for k = 2; you must show it for arbitrary k.) Hint. Use induction on k. Solution. This is readily shown by induction from the definition of convex set. We illustrate the idea for k = 3‚ leaving
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Yield management is defined as management of the room rates to maximize the room revenue under the conditions of fluctuating demand and where the products are perishable. Jauncey.S et al (1995). According to Jones.C et.al (1993) the two basics strategies on which the yield management is emcompasses on are: “When the demand is high the emphasis must be on receiving the highest rate possible for a room‚ ie maximum revenue When the demand is low‚ and/ or late booking demand is unlikely‚ the
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technology. I think this played into Dyson’s hands allowing the Dual Cyclone’s disruptive‚ innovative & design and technology capture the harts & minds of the customer. These market conditions where a factor in the success of the Dual Cyclone. The market proved to have an appetite for something new and different. The fact that the Dyson had over 100 patents helped ensure that the large appliance giants could not quickly come to market with exactly the same technology at a lower cost. This was also a factor
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Cacao Yield Maximizing yield for farmers has become the main objective in business agriculture and because of this there has been a frequent reoccurring theme of large-scale plantations being less efficient in terms of yield than small-scale farms. Specifically‚ the smaller cacao yield in the large plantation is due to biodiversity‚ natural habitats‚ and most importantly‚ community ecology. The cacao plant’s productivity is heavily dependent on their age‚ planting density‚ plant variety‚ soil
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Samples are collected and statistics are calculated from the samples so that one can make inferences or extrapolations from the sample to the population. This process of collecting information from a sample is referred to as sampling. A complete sample is a set of objects from a parent population that includes ALL such objects that satisfy a set of well-defined selection criteria. For example‚ a complete sample of Australian men taller than 2m would consist of a list of every Australian male taller
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