Economic growth Probability With Expansion Without Expansion High 0.20 S$ 65 million S$55 million Normal 0.55 S$ 8 million S$ 8 million Low 0.25 S$ 34 million S$ 30 million 1. What is the expected value of the Company with and without expansion? a b a x b Probability Without Expansion 0.20 S$55 million S$ 11 million 0.55 S$ 8 million S$ 4.4 million 0.25 S$ 30 million S$ 7.5 million S$ 22.9 million a b a x b Probability With Expansion 0.20 S$ 65 million S$ 13 million
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The Research Foundation of CFA Institute Literature Review Risk Management: A Review Sébastien Lleo‚ CFA Imperial College London The concept of risk has been central to the theory and practice of finance since Markowitz’s influential work nearly 60 years ago. Yet‚ risk management has only emerged as a field of independent study in the past 15 years. Advances in the science of risk measurement have been a main contributor to this remarkable development as new risk measures have been proposed
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Chapter 12 Autoregressive Conditional Heteroscedasticity (ARCH) and Generalized ARCH (GARCH) Models Section Section 12.1 Introduction ARCH and GARCH Models • ARCH and GARCH models are designed to model heteroscedasticity (unequal variance) of the error term with the use of timeseries data • Objective is to model and forecast volatility Example: Understand the risk of holding an asset; useful in financial situations • ARCH -- Autoregressive Conditional Heteroscedasticity • GARCH
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P roc. Natl. Acad. Sci. USA Vol. 94‚ pp. 4229–4232‚ April 1997 Economic Sciences The capital-asset-pricing model and arbitrage pricing theory: A unification M. A LI K HAN* AND YENENG SUN†‡ *Department of Economics‚ Johns Hopkins University‚ Baltimore‚ MD 21218; †Department of Mathematics‚ National University of Singapore‚ Singapore 119260; and ‡Cowles Foundation‚ Yale University‚ New Haven‚ CT 06520 Communicated by Paul A. Samuelson‚ Massachusetts Institute of Technology‚ Cambridge
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given in the Repair time and Probability information table as found in the case. The created table was defined as “Lookup” in the array information for VLookup function in Microsoft Excel. Next‚ based on the probability information provided‚ a Cumulative Probability column was generated by adding the probability numbers given (each with the number above it) and distributing the probability to the number of possible repair days from 1-4. For example‚ a .20 probability
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First‚ what is conditional cash transfer (CCT)? What makes it different from the unconditional cash transfer (UCT)? Conditional cash transfer is one of social transfer programs that grant poor households with regular cash under certain condition with which they comply by behaving as required‚ for instance sending their children
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Week 1 quiz Week 1‚ Quiz 1 Points Received 40/40 (100%) 1. Total cost equal the fixed cost plus the variable cost per unit divided by volume • True • False 2. Objective probabilities that can be stated prior to the occurrence of an event are • Subjective • A priori • Classical or a priori • None of the above 3. An experiment is an activity that results in one of several possible outcomes. • True
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Mean is the average of all the data. Mode is the number that occurs most frequently in the data set. Median is the middle value or average of the two middle values when the data is arranged in order from smallest to larges. Chapter 4: Basic Probability Concepts:In an organization of 30 people‚ we wish to elect 3 officers. How many different groups of officers are possible? 30*29*28=24‚360 (if only 1 person per office). Or 30*30*30=27‚000 (if 1 person can hold more than one office). Combinations:
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subcomponent (cm). Then if the machine is operating correctly‚ X ~ N (117‚ 2.12 ) . (i) find the probability that one randomly selected unit has a length greater than 120 cm; X −µ 120 − 117 ) = P( Z > 1.4286) ≈ P( Z > 1.43) σ 2.1 = 1 − P( Z < 1.43) = 1 − 0.9236 = 0.0764 X: P( X > 120) = P( > Alternative solution: P ( Z > 1.43) = P ( Z < −1.43) = 0.0764 (ii) Z: 117 120 0 1.43 find the probability that if three units are randomly selected‚ their mean length exceeds 120 cm; Let X = mean length
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|proficiency. | |Vocabulary: |Visuals‚ Materials & Texts: | |probability‚ event‚ outcome‚ sample space‚ tree diagram |graphing calculators‚ dice‚ coins‚ poster of tree diagram‚ index | | |cards for visual/verbal
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