5.00 Question Explanation A fundamental question of different types of risks. 5 points) Suppose there are three securities (A‚B‚ and C) to choose from‚ and next year the economy will be in an expansion‚ normal‚ or recession state with probabilities 0.30‚ 0.35‚ and 0.35‚ respectively. The returns (%) on the securitiies in these states are as follows: Security A {expansion = +10‚ normal = +8‚ recession = +6}; Security B {+25‚+10‚-10}; Security C {+7.5‚+7.5‚+7.5}. If the investor is risk neutral
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Objectives Paragraph Uncertainty in the business environment is a major threat at each and every level of the supply chain. Every day new challenges and opportunities arise – rising cost of fue‚ implications of an organization’s carbon footprint‚ outsourcing regulations‚ tax incentives‚ and political fluctuation. Proactively monitoring the implications of such events at frequent intervals is crucial for an organization. By using a variety of Supply Chain modeling and mathematical tools‚ an organization
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Chapter 7 Risk and Return Recap - Expected Return and Standard Deviation for single asset and 2-asset Portfolio Probability Return(A) Return(B) Good 0.3 - 0.05 -0.10 OK 0.4 0.10 0.15 Poor 0.3 0.20 Portfolio 0.30 E(R) 8.5% Covariance 0.014177 15.68% 11.91% 0.0153 Corr. 0.0246 9.76% S.D. 10.25% 0.009525 Variance 12% 0.99 EQ 7.2 Expected Return: E(RA) = (0.3) (‐0.05) + (0.4) (0.10) + (0.3) (0
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stationary with respect to the variance and with respect to the mean. First‚ we will assume statistical stationarity of all time series (later on‚ this restriction will be relaxed). Statistical stationarity of a time series implies that the marginal probability distribution is time-independent which means that: bullet the expected values and variances are constant stationary time series - expected values and variances are constant (V.I.1-2) where T is the number of observations in the time
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ECONOMICS 140 Professor Glenn Woroch 2/3/09 Lecture 5 ASUC Lecture Notes Online is the only authorized note-taking service at UC Berkeley. Do not share‚ copy or illegally distribute (electronically or otherwise) these notes. Our student-run program depends on your individual subscription for its continued existence. These notes are copyrighted by the University of California and are for your personal use only. ANNOUNCEMENTS First problem set is due this Thursday Feb. 5th in lecture
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Quiz 3 Name ______________________________ Class Number _________________ 1. Let X be a random variable with Cumulative Distribution Function (CDF) below. Answer the following probability questions: (You must write out CDF notation) – such as 1 2 3 4 5 6 7 8 9 10 .02 .09 .15 .41 .51 .66 .73 .97 .98 1.0 a) Answer _______________________ c) Answer _______________________ d) Answer _______________________ e) Answer _______________________
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in the case‚ according to the given probabilities. Ignore the plus/minus ranges.) For each of the 13 scenarios‚ we compare the Maxco bid with the Gambit bid under the scenario‚ determine the winner (i.e.‚ the higher bidder)‚ and calculate the profit for each player (i.e.‚ the winner’s profit is equal to the value of the oil reserve minus the winning bid‚ and the loser’s profit is zero). The expected profit earned by the Maxco strategy is equal to the probability weighted sum of the profits for Maxco
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chance that‚ if the real e¤ect was zero‚ that the average in a trial might be 18 just by chance? (c) Is the counter example found by the reporter useful in understanding the results for the study? Question 2. In the questions on normal probabilities‚ we examined probabilities of di¤erent ages where people marry. We wish to see if the data really supports a mean of 26 years (and standard deviation of 4 years) for …rst marriage. We collect a random sample of 100 people and record what age they were when
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There are 4 boys and 3 girls. What is the probability the boys and girls sit alternately? Ans 1/35 Q2 Two trains are 2 kms apart. Speed of one train is 20m/s and the other train is running at 30 m/s . Lengths of the trains are 200 and 300m. In how much time do the trains cross each other? Ans 50 seconds Q3 A& B are two players. They need to select one number from 1 to 25. If both the players select the same numbers they will win the prize. What is the probability of not winning in a single trial? Ans
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Question 1 0 out of 2 points | | | Opportunistic behavior on the part of the employer is possible because:Answer | | | | | Selected Answer: | employees often reduce their effort level if they are important to the company. | Correct Answer: | contracts are often incomplete and leave room for implicit understandings between the two parties. | | | | | Question 2 0 out of 2 points | | | In long-term job attachments‚ a worker’s wage:Answer | | | | | Selected Answer:
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