After real estate is added to the portfolio‚ there are four asset classes in the portfolio: stocks‚ bonds‚ cash and real estate. Portfolio variance now includes a variance term for real estate returns and a covariance term for real estate returns with returns for each of the other three asset classes. Therefore‚ portfolio risk is affected by the variance (or standard deviation) of real estate returns and the correlation between real estate returns and returns for each of the other asset classes
Premium Variance Standard deviation Risk
SAMPLE Population – the group of ALL people or objects that are under study Sample – a sub-set of the population Parameter – a numerical characteristic of a population 1. Population & Sample Means 2. Expected Values 3. Population & Sample Variances 4. Population & Sample Covariances 5. Population & Sample Correlation Coefficients 6. Estimators Statistic – a numerical characteristic of a sample Statistical inference – drawing conclusion about a population based on information contained
Premium Random variable Variance Probability theory
7) Data from a small bookstore are shown in the accompanying table. The manager wants to predict Sales from Number of Sales People Working. Number of sales people working | Sales (in $1000) | 4 | 12 | 5 | 13 | 8 | 15 | 10 | 16 | 12 | 20 | 12 | 22 | 14 | 22 | 16 | 25 | 18 | 25 | 20 | 28 | x=11.9 | y=19.8 | SD(x)=5.30 | SD(y)=5.53 | a) Find the slope estimate‚ b1. Use technology or the formula below to find the slope. b1=rsysx Enter x‚y Data in TI-84 under STAT > STAT
Premium Probability theory Variance Random variable
1.2 Below we list several variables. Which of these variables are quantitative and which are qualitative? Explain. a. The dollar amount on an accounts receivable invoice. Answer – Quantitative as the value is a number b. The net profit for a company in 2009. Answer – Quantitative as the value is a number. c. The stock exchange on which a company’s stock is traded Answer – Qualitative as it is descriptive or categorical. d. The national debt of the united states in 2009. Answer
Premium Standard deviation Arithmetic mean Variance
at the end of module 1 3 6 4 7 5 4 6 4 7 1 8 1 More 0 Q1 Descriptive Statistics Excel Worksheet b Q2 d Q3 e Q4 b 5. For the following sample of scores: 2‚ 6‚ 1‚ 4‚ 2‚ 2‚ 4‚ 3‚ 2 Mean variance standard deviation 2.889 2.099 1.537 Find the mean‚ variance and standard deviation 6. A sample of size 7 (n = 7) has a mean of M = 9. One of the sample scores is changed from x = 19 to x = 5. What is the value for the new sample mean? New Sample Mean 7 7. Using Excel
Premium Standard deviation Variance Arithmetic mean
a criterion for maximizing the between-class variance of pixel intensity to perform picture thresholding. However‚ Otsu’s method for image segmentation is very time-consuming because of the inefficient formulation of the between-class variance. In this paper‚ a faster version of Otsu’s method is proposed for improving the efficiency of computation for the optimal thresholds of an image. First‚ a criterion for maximizing a modified between-class variance that is equivalent to the criterion of maximizing
Premium Random variable Cumulative distribution function Variance
normal random variable: Theorem 1: Suppose Y = ln X is a normal distribution with mean m and variance v‚ then X has mean exp( m + v /2 ) Proof: The density function of Y= ln X Therefore the density function of X is given by Using the change of variable x = exp(y)‚ dx = exp(y) dy‚ We have = Note that the integral inside is just the density function of a normal random variable with mean (m-v) and variance v. By definition‚ the integral evaluates to be 1. Proof of Black Scholes Formula Theorem
Premium Normal distribution Standard deviation Variance
precipitation will influence beak size. • Variances in beak size will influence beak size. MATERIALS The materials needed for this experiment consist of a computer and access to the Evolution Lab on the University of Phoenix student website. In the Evolution Lab there are two islands‚ Darwin Island and Wallace Island. There are seven variables that can be changed to run many different experiments on both islands. The variables are beak size‚ variance of beak size‚ heritability‚ clutch size‚ island
Premium Experiment Evolution Natural selection
Cognitive Experimental Research Report. The Effect of Word and Picture Stimuli on the Number of Items Recalled. Abstract Based on Standing’s (1973) examination of recognition memory and the recall of words and pictures which supported the picture superiority effect‚ this experiment measured the number of items recalled by participants that had either been given word
Premium Hypothesis Student's t-test Arithmetic mean
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
Premium Variance Probability theory Utility