John Doe Fin 4980-01 Dr. Alex 2/18/2013 Project 1: “Foundations of Portfolio Theory” by. H.M. Markowitz (1991) Foundations of Portfolio Theory by H.M. Markowitz is based on a two part lesson of microeconomics of capital markets. Part one being that taught by Markowitz‚ which is solely geared toward portfolio theory and how an optimizing investor would behave‚ whereas part two focuses on the Capital Asset Pricing Model (CAPM) which is the work done by Sharpe and Lintner. In this article Markowitz
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contractors (1 and 2) placed a bid on a road construction project. They were each asked to provide percentile estimates of the time (x‚ in years) it would take the road to undergo a major maintenance after its completion. We seek to maximize this time variable x‚ as larger values imply better structural integrity as well as cheaper projection of the net present value for maintenance cost. The CDF for contractor 1‚ F1(x) is as follows: x 20 25 40 45 50 F1(x) 0.00 0.25 0.50 0.75 1.00
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STA1101 Normal Distribution and Continuous random variables CONTINUOUS RANDOM VARIABLES A random variable whose values are not countable is called a _CONTINUOUS RANDOM VARIABLE._ THE NORMAL DISTRIBUTION The _NORMAL PROBABILITY DISTRIBUTION_ is given by a bell-shaped(symmetric) curve. THE STANDARD NORMAL DISTRIBUTION The normal distribution with and is called the _STANDARD NORMAL DISTRIBUTION._ Example 1: Find the area under the standard normal curve between z = 0 and z = 1.95 from z
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Calculus in Medicine Calculus in Medicine Calculus is the mathematical study of changes (Definition). Calculus is also used as a method of calculation of highly systematic methods that treat problems through specialized notations such as those used in differential and integral calculus. Calculus is used on a variety of levels such as the field of banking‚ data analysis‚ and as I will explain‚ in the field of medicine. Medicine is defined as the science and/or practice of the prevention
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Question4: What closing time should Citywide Spirits Shoppe choose to maximize profits? Through the Attachment: (Evening time) Contribution Margin = average purchase revenue-average purchase cost = $30.52-$23.25 = $7.27 per customer per purchase Average numbers of customer: (Attachment 2) close time averge customers Time Total customer 10pm 10.18 10pm~11pm 12 11pm 10.16 10pm~12pm 21 12pm 10.08 10pm~1am 27 1am 9.71 10pm~2am 32 2am 9.4 10pm~3am 36 3am 9.06 10pm~4am
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1. Decision tree for Friday pressing Mr. Ward is trying to decide on how many CDs to press on the first night of the festival. His intuition combined with his experience allowed him to make some predictions of demand. These take the form of probabilities. “The probabilities may be subjective estimates from managers or from experts in a particular field‚ or they may reflect historical frequencies. If they are reasonably correct‚ they provide a decision maker with additional information that can
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In this paper‚ we will be looking at three different scenarios in order to understand and implement different decision models. Question one The Gorman manufacturing company is trying to decide whether to manufacture a component part or to purchase it. In order to make this decision we need to calculate the Expected Monetary Value for each probability. The highest EMV will be the best decision (Satyaprasad‚ Nirmala‚ & Saha‚ 2012). So‚ EMV for manufacture is= -20(.35) + 40(.35) + 100(.30) = -7+
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Analysis of “King of the Bingo Game” Ideas of slavery‚ identity‚ and what is acceptable behavior differ greatly in the past-Civil War North and South. Ralph Ellison’s “King of the Bingo Game” depicts how traditional southern slave mentalities are in conflict even after Lincoln’s Emancipation Proclamation of the slaves‚ leading many‚ like the nameless main character to try and find a new identity and giving him a taste of power to control his life and the lives of others. From the beginning
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Expected Monetary Value In a business environment‚ we frequently use probabilities to assess alternative financial decisions Example 1: A coin is tossed ten times. When a head is obtained‚ €4 is won. When a tail is obtained‚ €2 is lost Calculate the expected winnings. Outcome HEAD TAIL Winnings €4 -€2 Probability 0.5 0.5 Expected winnings in one toss: Expected Monetary Value (or just Expected Value (EV) = €1 Note: You never actually receive
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MAT - 3rd December‚ 2006 Samples Questions Samples questions and answers that appeared in MA Section: Q1 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
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