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Central Tendency

Stock Valuation Models

1. Adams Company stock paid a dividend of $3.00 from last year, and $3.25 from this year. The increase in the dividend is similar to the long term growth of the company. Considering the risk, your required rate of return from this stick is 14%. Find the price of stock. 2. The current price of Ford stock is $50 a share and i

Mathematical expectation

1) Suppose that a school has 20 classes: 16 with 25 students in each, three with 100 students in each, and one with 300 students, for a total of 1000 students. a) What is the average class size? b) Select a student randomly out of the 1000 students. Let the random variable X equal the size of the class to which this student be

Mathematical expectation

1) In a particular lottery, 3 million tickets are sold each week for 50c apiece. Out of the 3 million tickets, 12,006 are drawn at random and without replacement and awarded prizes: twelve thousand $25 prizes, four $10,000 prizes, one $50,000 prize, and one $200,000 prize. If you purchases a single ticket each week, what is the

Expected portfolio return

Musumeci Capital Management has invested its portfolio as shown here. What is Musumeci's expected portfolio return? Asset Portfolio Weight Expected Return Money market securities 10% 4% Corporate bonds 20 8 Equities 70 12

The Best Average - Considering Skew and Outliers

If we have student scores of 4.0, 3.7, 3.7, 3.7, 1.0 the average would be 3.2 while the median and the mode would both be 3.7. Which is the best measure of the average? Discuss the concept of skew in relation to this data set. Consider any outliers' effects on the different averages as well.

American Intellectual Union Data Set

The data set for our course is a sample of a survey conducted on the population of the American Intellectual Union (AIU). It is available via the following link: DataSet with DataSet Key which contains the following nine sections of data that will be used throughout our course: (1) Gender (2) Age (3) Department (4) Position

Estimating the expected return

Suppose the market risk premium is 6% and the risk-free interest rate is 4%. Using table 10.6 (table attached), calculate the expected return of investing in H.J Heinz stock, calculate the expected return of investing in Cisco system stock and calculate the expected return of investing in General Electric stock?

Stocks, Risk and Expected Returns

Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Dividend Yields, Capital Gains, Bonds and Coupon Rates

9. Krell Industries has a share price of $22.00 today. If Krell is expected to pay a dividend of $0.88 this year, and its stock price is expected to grow to $23.54 at the end of the year, what is Krell's dividend yield? 3.00% 4.00% 7.00% 10.00% 11.00% 10.Krell Industries h

Investment Case Study

Details: Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They now rent an apartment but are considering purchasing a condominium for $100,000. If they do, a down payment of $10,000 will

Statistics

The Saki motorcycle dealer in Minneapolis-St. Paul area wants to make an accurate forecast of demand for the Saki Super TXII motorcycle during the next month. Because the manufacturer is in Japan, it is difficult to send motorcycles back or reorder if the proper number is not ordered a month ahead. From sales records, the dealer

Statistics - Expected Percentage / Standard Deviation

Assume that within an investment pool of 1,000 mortgages (a mortgage-backed security) there are 562 that are 'under water' - i.e. the current market value is less than the outstanding mortgage balance. Suppose further that 160 mortgages will be randomly chosen from the pool by an investment group (that does not know the exact n

Conducted Surveys on Populations

The data set for our course is a sample of a survey conducted on the population. It is available via the following link: DataSet with DataSet Key which contains the following nine sections of data that will be used throughout our course: (1) Gender (2) Age (3) Department (4) Position (5) Tenure (6) Overall Job Satisfaction (7

Schedule of Expected Cash Collection

Farley Company reported the following information for 2007: Budgeted Sales: September $ 240,000; October $310,000; November $290,000; December $360,000; and January $200,000. Budgeted Purchases: September $ 90,000; October $120,000; November $128,000; December $ 144,000; and January $ 88,000. -All sales are on credit. -Cus

Corporate Finance : Expected Return, Exchange Rates, EBIT and Definitions

1. Portfolio Expected Return. You own a portfolio that has $900 invested in Stock A and $1,700 invested in Stock B. If the expected returns on these stocks are 10 percent and 16 percent, respectively, what is the expected return on the portfolio? 2. Purchasing Power Parity and Exchange Rate. According to purchasing power par

Determining Required Rate of Return and Expected Return: Example

A stock has a beta of 1.5, the market risk premium is 9%, and the risk-free rate is 5%. a. What is the required rate of return on this stock? b. What is the expected return on the market? c. If based on your personal opinion the stock will generate a return of 20%, is the stock over-valued or under-valued? Would you buy or

Seasonal index - Ratio to moving averages

An analyst wants to use the ratio-to-moving average method to forecast a company's sales for the next few quarters. Beginning in Quarter 4 of 2005, the analyst collects the following sales data (in millions of dollars). Estimate the seasonal index associated with Quarter 3. Round your answer to at least 3 decimal places.

Moving averages

University officials at a major university would like to use 5-term moving averages to analyze enrollment. Enrollment data (in thousands of students) for the 15 most recent terms are shown in the middle column of the table below. A time series plot of the data was included in the question. In the far-right column of the table ar

Schedules of expected cash collections and disbursments.

I need help with the below problem. I do not understand how to prepare expected cash collections/disbursments. Calgon Products a distributor of organic beverages needs a cash budget for September. The following information is available: a. The cash balance at the beginning of September is $9,000 b. Actual sales for July an

Statistics - Measure of Center

Please help with the following problems. Provide step by step calculations. a. A report on the assets of American households says that the median net worth of households headed by someone aged less than 35 years is $11,600. The mean net worth of these same young households is $90,700. What explains the difference between the

Stocks & Equity Calculations: 1) What is the stock's expected constant growth rate after t = 4, i.e., what is X? 2) What is Sorenson's expected stock price in 7 years, i.e., what is P7? 3) What is Petry's estimated intrinsic value per share of common stock?

1. Prock Petroleum's stock has a required return of 13%, and the stock sells for $50 per share. The firm just paid a dividend of $1.00, and the dividend is expected to grow by 30% per year for the next 4 years, so D4 = $1.00(1.30)4 = $2.8561. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever

Calculating Expected Return

Calculate the expected return on the portfolio [E ( R )] of the following assets if you invest 20% in asset 1, 30% in asset 2, and 50% in asset 3. How and why will your answer change if you shift 20% of invested funds from the least risky (asset 3) to the most risky (asset 1) asset? Asset Return 1.

DECISION MAKING

Deliverable Length: 2 pages There are three (3) parts to this project. Your research paper should address each one fully and thoroughly. Part 1: Review each situation (there are FIVE scenarios within the activity) and identify the applicable decision concept (you may select from any theory, principle, model, etc. from ou

The Fundamentals of Statistics

(1) Gender (2) Age (3) Department (4) Position (5) Tenure (6) Overall Job Satisfaction (7) Intrinsic Job Satisfaction - Satisfaction with the actual performance of the job (8) Extrinsic Job Satisfaction- Things external to the job, e.g., office location, your work colleagues, your own office (cubicle/hard walled office, etc), an

Question about Moving average calculation

A computer software company wants to use 5-period moving averages to forecast the number of users who download its anti-virus software. The numbers of users (in thousands) for the 14 most recent periods are shown in the middle column of the table below. Also shown is a time series plot of the data. In the far-right column of t

Finding Maximum Number of Expected Sales

A supervisor has 5 salespeople who can be assigned to 5 different routes next month. Adam can be expected to sell $9000 worth of goods on Route 1, $8000 on Route 2, $10,000 on Route 3, $7000 on Route 4, and $8000 on Route 5. Betty would sell $6000. $9000, $5000, $7000, and $4000 on these routes; Charles would sell $4000, $50

Expected cash collection problem

All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 45% in the month following sale, and the rest are collected in the second month following sale. Bad debts are negligible and should be ignored. The following are budgeted sales data for the company: Janu

Solving an expected cash collection problem

Sioux Company is estimating the following sales for the first six months of next year: January $250,000 February $220,000 March $240,000 April $300,000 May $360,000 Sales at Sioux are normally collected as 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on