Quantitative Methods for Management - The EMBI Investor - 1. Purpose of the Assignment The purpose of this assignment is to review and to adopt the statistical concepts (mean‚ standard deviation‚ regression coefficient‚ confidence limits‚ etc.) which we have learned in the first two classes‚ and to develop our further understanding of how those concepts can be used in business management. 2. Calculation Assumptions Expected return : the mean of daily returns daily return(t) = (price(t)
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Nguyen Duc Thuan ID: 1349672 FIN 3331 – Risk & Return Assignment 1. Answers: The expected return of this stock is: E[RJ] = 0.2(12%) + 0.35(18%) + 0.3(-10%) + 0.15(10%) = 7.2% The standard deviation is: 2J = 0.2(0.12 – 0.072)2 + 0.35(0.18 – 0.072)2 + 0.3(-0.1 – 0.072)2 + 0.15(0.1 – 0.072)2 = 0.0135 J = = 11.63% 2. Answers: The average return and standard deviation of Large co. stock return is: Sum of Large co. stock = -14.69 – 26.47 + 37.23 + 23.93 – 7.16 + 6.57 = 19.41 Mean = Sum/N
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Orion Controls Case Answer 1 I would say we should sell existing valves than develop an improved model and sell it at increased price if you simply look at the decision tree I made based on the assumption and information the case provides. The Expected Monetary Value (EMV) of building new model is $105‚500‚ whereas we can earn $100‚000 payoffs by selling current model (see Figure 1). When considering the situation the Orion Controls faces‚ however‚ I should reconsider my decision. Orion
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portfolio beta= w1b1+w2b2 w1 = 20‚000/55‚000= .3636 w2= 35‚000/55‚000= .6364 portfolio bet= .3636*.7 + .6364*1.3 = 1.082 Required rate of return AA industries = risk free rate + market risk premium*beta AA industries ri = rRF + (rM - rRF)b 4% + (12%-4%)*.8 = 10.4% required return= risk free rate+ market risk premium*beta ri = rRF + RPM* b Market- required return= 5%+7%= 12% Beta of 1- required return= 5%+ 7%*1= 12% Beta of 1.7- required return= 5%+ 7%*1.7 = 16.9% = P1r1+P2r2+P3r3+
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MT230 2010/2011 Exercise 1 (To be returned on Tuesday‚ October 5) Question 1 A mechanical jar filler is used to fill jars with coffee. The filler is set so that the mean jar fill is 205 grams. The standard deviation of the jar fills is 2.5 grams. If the population of jar fills is normally distributed‚ what percentage of jar fills will be (i) greater than 202.5 grams‚ (ii) between 201.25 and 208.75 grams‚ and (iii) greater than 212.5 grams? If coffee jars have a capacity of 200 grams‚ (iv) what percentage
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Controllinghttp://www.xvideos.com/video4523234/leah_teamed_with_tianahttp://www.xvideos.com/video4280126/denise_teamed_with_leah Controlling is verifying whether everything occurs according to plans adopted‚ instruction issued and priciples established. Controlling is to ensure there is effective and efficient utilization of organizational resources to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance‚ discover the causes of such deviations
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Chapter 9 Flexible Budgets and Performance Analysis Solutions to Questions 9-1 The planning budget is prepared for the planned level of activity. It is static because it is not adjusted even if the level of activity subsequently changes. 9-2 A flexible budget can be adjusted to reflect any level of activity—including the actual level of activity. By contrast‚ a static planning budget is prepared for a single level of activity and is not subsequently adjusted. 9-3 Actual results can differ
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(1.3) Goal of firm C M | Answer: a | MEDIUM | The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to | | | | | | | | | | a. | Maximize the stock price per share over the long run‚ which is the stock’s intrinsic value. | b. | Maximize the firm’s expected EPS. | c. | Minimize the chances of losses. | d. | Maximize the firm’s expected total income. | e. | Maximize the stock price on a specific target date. | (1.3) Corporate
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Fall 1 2012 Risk Pooling Assignment 8/29/2012 Due 9/5/2012 (Wednesday) In Class. Please type or write legibly. Name _____________________ UH Username ___________ This assignment is designed to help you understand the concept of risk pooling. You are the CRO (i.e.‚ Chief Risk Officer) of a manufacturing firm. The CEO asks you to design a risk management program for workplace injuries and says that she is willing
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“Difference of Normality” Word Count: 679 Everyone has different opinions about what normal is. In some cultures‚ killing a human being is normal while in other tradition it is taught not to harm any animal. “The Lottery” by Shirley Jackson shows that the tradition of killing someone for the crops is normal but to many people these traditions are very abnormal. This is because they are willing to kill another person for their own needs. What is normal to them is very abnormal to us. Adults accept
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