Risk Management Problem‚ Set I T Blount FIN/415 Brenda Papillon May 6‚ 2013 6-1. (Expected rate of return and risk) Carter Inc. is evaluating a security. One-year Treasury bills are currently paying 9.1 percent. Calculate the investment’s expected return and its standard deviation. Should Carter invest in the security? Probability Return .15 6% .30 9% .40 10% .15 15% Expected Rate of Return: (.15 x .06) + (.30 x .09) + (.40 x .1) + (.15 x
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FINA 5210 Problem Set 1 (Group 305) Problem 1 (a) WpC=[E(rp)-rf] ÷Aσp2 =6%÷2.5×(20%)2 =60% WfC=100% - 60% = 40% (b) Expected return of Complete portfolio is: rCEc= WpC×E(rp)+ WfC×rf =60%×10% + 40%×4% =7.6% The standard deviation of Complete portfolio is: σc = WpC × σp = 60% × 20% = 12% Certainty-equivalent rate of return for investing in C: rc CE= Uc = rCEc- 1/2Aσc2 = 7.6% - 0.5×2.5×12%2 = 5.8% Certainty-equivalent rate of return for investing in P: rp CE= Up= rCEp- 1/2Aσp2
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Econ 302 Name:_____________________ Fall 2014 Problem Set 1 (Thursday September 18‚ 2014 In class – no extensions) Please Print and Answer in the Provided Space 1) Consider the following estimates for an iPad sold in Canada in 2010: retail price $550 (say at Best Buy)‚ Apple (a U.S. corporation) wholesale price $475‚ Apple intermediate costs $385. Of Apple’s intermediate costs‚ $100 was wholly produced by U.S. manufacturers‚ and $285 from other foreign producers. Suppose the production chain was
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Greek mathematician and philosopher. Pythagoras was responsible for important developments in the history of mathematics‚ astronomy‚ and the theory of music. The thing that Pythagoras is probably the most famous for is the Pythagorean Theorem. The Pythagorean Theorem is used in the field of mathematics and it states the following: the square of the hypotenuse of a right triangle is equal to the sum of the squares of the two other sides. This means that if one makes a square (with all sides equal in
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constraints on the currents in the branches that are attached to each node of a circuit. In simplest terms‚ KCL states that the sum of the currents that are entering a given node must equal the sum of the currents that are leaving the node. Thus‚ the set of currents in branches attached to a given node can be partitioned into two groups whose orientation is away from (into) the node. The two groups must contain the same net current. In general‚ the currents entering or leaving each node m of a circuit
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The four color theorem is a mathematical theorem that states that‚ given a map‚ no more than four colors are required to color the regions of the map‚ so that no 2 regions that are touching (share a common boundary) have the same color. This theorem was proven by Kenneth Appel and Wolfgang Haken in 1976‚ and is unique because it was the first major theorem to be proven using a computer. This proof was first proposed in 1852 by Francis Guthrie when he was coloring the counties of England and realized
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Kenneth Smith 12/19/13 NT 1230 Unit 1 Problem Set 1 Page 25 1. The general public in the United States will be able to purchase all of the Windows 7 editions in retail stores except Basic‚ Enterprise‚ and Starter. 2. The core module that provides all of the Windows 7 capabilities that isn’t language or edition-specific is called Min Win module. 3. When you copy a file to a library‚ Windows Explorer writes the file to the folder designated as the Open and Save as
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FBE 421 Prof. Briggs Problem Set #1 Please print out this document and clearly handwrite your answers to each of the questions below in the space provided. Show all your work accordingly. A. Calculate LTM (a) Revenue and (b) Net Income for Costco Wholesale (COST) using their latest financial statements as of 3Q2011. 77946+60737-53821=84‚862 MM Revenue 1303+984-871= 1‚416 MM Net-income B. Calculate Costco’s LTM (a) EBIT and (b) EBITDA. 2077+1677-1389=2‚365 MM EBIT (2077+795)+(1677+582)-(1389+549)=
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Beowulf’s Confidence Beowulf was written in the earliest age of English poetry. Back in the Anglo-Saxon times‚ in order to make a name for themselves‚ warriors had to fight in battles. They believe that you should fight until death with absolutely no retreating. Beowulf‚ a young Geatish warrior‚ comes to Hrothgar’s kingdom to return a favor to him. While Beowulf is there‚ he fights in two battles; the battle with Grendel and the battle with Grendel’s mother. Much later in the poem‚ he fights
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Of Self confidence “Self confidence is the realistic confidence in one’s own judgment‚ ability‚ power etc. it is the belief of believing in you; to believe that one is able to accomplish what one sets out to do‚ to overcome obstacles and challenges.” The more self confident you are‚ the more likely you’ll succeed. For man’s perception of himself plays an important role in the way others perceive him. If a person is self confident‚ it will show in the way how he holds himself and interact
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