The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 15.1% (i.e., an average gain of 15.1%) with a standard deviation of 35%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. (Round your answers to two decimal places.)
a.) What percent of years does this portfolio lose money, i.e. have a return less than 0%?
b.) What is the cutoff for the highest 15% of annual returns with this portfolio?

Answers

Answer 1

Answer:

a) the required percentage is 32.64%

b) the cutoff for the highest 15% of annual returns with this portfolio  is 49.02%

Step-by-step explanation:

Given that;

mean μ = 14.7 %

standard deviation σ =33%

a.) What percent of years does this portfolio lose money, i.e. have a return less than 0%?

P( portfolio lose money )

= P( x< 0) P( 0-14.7 / 33 )

P( Z < -0.45 ) =  0.3264 ≈ 32.64%

Therefore, the required percentage is 32.64%

b)

the cutoff for the highest 15% of annual returns with this portfolio will be:

P( X ≥ x) = 15%

1 - P(X ≤ x) = 0.15

P(X ≤ x) = 0.85

P(Z ≤ x-14.7 / 33 ) = 0.85 ----------let this be equation 1

form tables, P(Z ≤ 1.04) = 0.85 -----LET THIS BE EQU 2

from the equations;

(x-14.7 / 13 ) = 1.04

33 × 1.04 = x-14.7

34.32 = x-14.7

x = 34.32 + 14.7

x = 49.02%

Therefore, the cutoff for the highest 15% of annual returns with this portfolio  is 49.02%


Related Questions

Pls answer asap
Will give brainliest

Answers

Answer:

8

Step-by-step explanation:

the answer is option c8

thank u

Write the equation of the function of a parabola with vertex at (–1,–2) and a point (1,–6) that lies on the curve.

Question 9 options:

f(x) = −(x − 1)2 − 2


f(x) = −(x + 1)2 − 2


f(x) = (x + 1)2 – 2


f(x) = (x − 1)2 − 2

Answers

Answer:

The second answer is the correct one, f(x) = -(x + 1)² - 2

Step-by-step explanation:

We know that the answer must either be the second or third, because those two have (x + 1) squared, which means that the vertex must have an x co-ordinate of -1.

We also know that the third one can't be correct, as the y-coordinate of -6 requires a negative coefficient of the x^2.  Without that the parabola would be moving upward from its vertex of (-1, -2).

With those we can eliminate all answers but the second one

Answer:

Step-by-step explanation:

Write the equation of the function of a parabola with vertex at (–1,–2) and a point (1,–6) that lies on the curve.

Question 9 options:

f(x) = −(x + 1)2 − 2

please help with these two!!!

17. Given f(x) = e*-7, select the statement that is true.
A. f-'(x) = In x - 7
B. f-'(x) = In(x - 7)
c. f-'(x) = In x + 7
D. f-'(x) = In(x + 7)


Answers

Answer:

thanks for the points here u go

Step-by-step explanation:

Find the values of x and y.
2x 28 4y 28

Answers

Answer:

y=7

x°=15°

Step-by-step explanation:

First we see that there is a equilateral triangle (all angles and also sides should be equal to each other) meaning that 4y=28, which simplifies to y=7

Additionally, we can see that one of the acute angles of the equilateral triange is complementary with the 2x° angle, so 2x°+(the acute angle)=90°

Since the triangle is equilateral each angle must be equivalent and since there is only 180° in a triangle each angle is 180°/3=60°

so 2x°+(60°)=90°

simplify for x°

2x°=30°

x°=15°

After selecting 180 of its employees to from a new division, a company discovers that engineers outnumber analysts by a 3:1 ratio in the division. Oly analysts and engineers work in the new division. How many more analysts must the company add to the division if it wants to have a 1:1 ratio of engineers to analysts at the new division?

Answers

Answer:

I think its 90

Step-by-step explanation:

3x plus 1x is 4x divide 180 but 4 and get 45 so that meab there are 135 and 45

you need 90 more analysts to have a 1 to 1 ratio

Nikki dove into a pool and swam underwater. The table shows how her depth changed during a 4-second time period.

Which equation shows the relationship in the table between the time, t, and the depth, d?

Answers

Answer:d

Step-by-step explanation:

Suppose that the functions s and t are defined for all real numbers x as follows.
s(x)=2x-2
t(x)=3x
Write the expressions for (s-t)(x) and (s+t)(x) and evaluate (s⋅t)(-1)

Can't seem to figure it out

Answers

Answer:

Step-by-step explanation:

Given functions are,

s(x) = 2x - 2

t(x) = 3x

(s - t)(x) = (2x - 2) - 3x

            = -x - 2

            = -(x + 2)

(s + t)(x) = (2x - 2) + 3x

             = 5x - 2

(s . t)(x) = (2x - 2)(3x)

            = 6x² - 6x

(s . t)(-1) = 6(-1)² - 6(-1)

            = 6 + 6

            = 12

I will give brainiest to whoever answers correctly !!

Answers

10 years would be 5905

50 years would be 11487

Does Mario Kart have a secret agenda? Is it promoting capitalism, socialism, or communism?

Answers

I would say that despite the games childish and innocent story, the underlying theme seems to be promoting communism globally. Hope this helped
Pretty much all video games promote capitalism.

What is 3x-6+7y-4y plsssssssssss helpppppppp meeere

Answers

Answer:

3

+

3

6

Step-by-step explanation:

PLEASE HELP IM TIMED whats 1 divded by 1

Answers

Answer:

1

Step-by-step explanation:

1 divided by anything is that number. So with that information 1 divided by on would be 1.

A ski lift makes a 35° angle of elevation with the ground and takes passengers on a 6,550-foot ride up a mountain. Charlotte needs to figure out the elevation of the lift. Which equation and diagram can be used to model this problem?

Answers

Answer:

Top right one is the answer

Step-by-step explanation:

B :)

The elevation of the lift is equivalent to 11293.1 ft.

What is the angle of elevation?

The angle of elevation is an angle that is formed between the horizontal line and the line of sight.

Given is that a ski lift makes a 35° angle of elevation with the ground and takes passengers on a 6,550 foot ride up a mountain.

Assume the elevation to be [x] ft. We can find the elevation as -

sin (35°) = (6550/x)

x = {6550/sin(35°)}

x = (6550/0.58)

x = 11293.1 ft

Therefore, the elevation of the lift is equivalent to 11293.1 ft.

To solve more questions on Angle of elevation, visit the link below-

https://brainly.com/question/29008290

#SPJ2

Homework help ???????????

Answers

Answer:

15

Step-by-step explanation:

The calculation is:

endamount - startamount divided by number of days.

(237-27) / 14 = 15

Answer:

237 - 27 = 210 (she already had 27 to start, so subtract that from the total)

210 ÷ 14 = 15 (divide by 14 because there are 14 days in two weeks)

so she bought 15 stickers each day

Please help me! I’m begging you I’ll mark you brainly!

Answers

Answer:

A = 2x^2 + 11x + 15

B = 3x^2 - x - 2

A-B = -x^2 +12x +17

(3x + 4) (1 - 1)
Evaluate the limit lim
a.-3
b. 3
c. 1
d limit does not exist

Answers

it d lol cause d is the smartest answer i know
The answer is d because 1-1=0 and you can’t simplify any further

Help me out to get this math problem solve

Answers

Answer:

1. 1900 children.

2. 600 adults.

Step-by-step explanation:

Let c represent the number children.

Let a represent the number of adult.

From the question given above, we were told that 2500 people entered the fair. This can be obtained as follow:

2500 = c + a ..... (1)

From the question given above, we were told that:

Cost per child = $ 2

Cost per adult = $ 4

Total amount collected = $ 6200

Thus, we can write the above as:

6200 = 2c + 4a .....(2)

Summary:

2500 = c + a ..... (1)

6200 = 2c + 4a .....(2)

1. Determination of the number of children that attended the fair.

From equation 1

2500 = c + a

Make a the subject by rearranging

a = 2500 – c ....... (3)

Substitute the value of 'a' in equation 3 into equation 2

6200 = 2c + 4a

a = 2500 – c

6200 = 2c + 4(2500 – c)

Clear bracket

6200 = 2c + 10000 – 4c

Collect like terms

6200 – 10000 = 2c – 4c

–3800 = –2c

Divide both side by –2

c = –3800 / –2

c = 1900

Thus, 1900 children attended the fair

2. Determination of the number of adults that attended the fair.

Substitute the value of c into equation 3.

a = 2500 – c

c = 1900

a = 2500 – 1900

a = 600

Thus, 600 adults attended the fair.

Solve the equation. w/5 =3 w=​

Answers

Answer:

15

Step-by-step explanation:

[tex]\frac{w}{5}[/tex] = [tex]3[/tex] (multiply both sides by 5)

w= 15

Answer:

w= 15

Step-by-step explanation:

1. Multiply all terms by the same value to eliminate fraction denominators

2. Then simplify

PLZ NEED HELP QUICK PLZ

Answers

Answer:

Slope = 3

Step-by-step explanation:

For a proportional relationship, the slope of the line is simply y/x.

So using any given pair of values from the table, say (1, 3), the slope is:

y/x = 3/1

Slope = 3

What is the slope of the line which passes through (1, 4) and (0, 1)?

Answers

3/1 is the slope............,

n +8<-2 or 8+ n > 5
I’m supposed to solve and graph this compound which I did but I’m not sure if it’s correct or not it’s after school hours and I’m not allowed to contact my teacher
I got n<-10 Or n>-3
I just want to know if I did this correct please? Sorry for the messy handwriting in the picture

Answers

Answer:

the first one n + 8 < -2 is correct, the second one is correct too, but its just the graph that is wrong. n > -3, since its greater, it should increase in number, so the line would go toward the right, the opposite direction you drew down.

Step-by-step explanation:

Hope this helps

what is the answer 2x5-5=

Answers

the answer to that question is 5

PLEASE ANSWER ASAP FOR BRAINLEST!!!!!!!!!!!!!!!!

Answers

Answer: y  ≥  − 2

Step-by-step explanation : hope it helps :)

A countertop is 11 feet long and 8 feet wide.

Part 1 out of 2
What is the area of the countertop in square meters? Use the conversion 1 foot = 0.305 meter. Round your final answer to 2 decimal places.

The countertop is
square meters.
Part 2 out of 2
Tile costs $28 per square meter. How much will it cost to cover the countertop with new tile?

It will cost $
to cover the countertop with new til


PLZZZZZ
HELPPPPPP
MEEEEEE
PLZZZZZ

Answers

part 1 8.19 meters
11 * .305 = 3.355
8 * .305 = 2.44
3.354 + 2.44 = 8.19

it will cost $252 to cover it
you need 9 square meters to cover 8.19 meters of area
so 9 * 28 = 252

Find each difference.

A: (−5)−6


B: 35−(−8)


C: −438−(−114)

Answers

Answer:

A = -11

B = 43

C = -324

Step-by-step explanation:

-5 - 6 = -11

35 + 8 = 43

-438 + 114 = -324

PLZ HELP ASAP! WILL GIVE 30 POINTS AND BRAINLIEST! which sequence of transformations will generate the same image as translating a figure 8 units to the left?
a) a reflection over the line x= -1 followed by a reflection over the line x= -9.
b) a reflection over the line x= -3 followed by a reflection over the line x= -5.
c) a reflection over the line x= -7 followed by a reflection over the line x= -3.
d) a reflection over the line x= -9 followed by a reflection over the line x= -13.

Answers

I think it would be C

Solve for x.
I will give brainliest

Answers

22.5 i’m pretty positive

Answer:

22.5

Step-by-step explanation:

Everything equals 180. This means that the 90 degree angle creates half of that would mean that everything on the right side of the 90 degree angle, also has to equal 90 degrees. X=22.5 because you have to combine like terms meaning x + 3x = 90- 4x=90. Divide by 4 on both sides of the equals sign. Plug that into a calculator and you get 22.5 Since it is only asking for the singular x, you don't have to solve for 3x. (It would be 67.5)

3(x + 3) − 2 < 4
does anyone know this?

Answers

Answer:3 + ? = 7, 3 + n = 7, 3 + x = 1

Step-by-step explanation:

and so on, where the symbols ?, n, and x represent the number we want to find. We call such shorthand versions of stated problems equations, or symbolic sentences. Equations such as x + 3 = 7 are first-degree equations, since the variable has an exponent of 1. The terms to the left of an equals sign make up the left-hand member of the equation; those to the right make up the right-hand member. Thus, in the equation x + 3 = 7, the left-hand member is x + 3 and the right-hand member is 7.

Answer:

Inequality Form:  x < −1

Interval Notation:  (−∞, −1)

Step-by-step explanation:

3 (x + 3) −2 < 4

Simplify 3 (x + 3) − 2.

Apply the distributive property.

    3x + 3 ⋅ 3 − 2 < 4

Multiply 3 by 3.

    3x + 9 − 2 < 4

Subtract 2 from 9.

    3x + 7 < 4

Move all terms not containing x to the right side of the inequality.

Subtract 7 from both sides of the inequality.

    3x  < 4 − 7

Subtract 7 from 4.

    3x  < −3

Divide each term by 3 and simplify.

    x < −1

The result can be shown in multiple forms.

Inequality Form:  x < −1

Interval Notation:  (−∞, −1)

Brenda purchased a new watch in 2012. The value of her watch, t years after she bought
it, can be modeled by the function A(t) = 117(0.93)
Drag and drop the correct number or phrase to left of each sentence to make the
sentence true for the function

Answers

Answer:

The rate of change in the value of the watch is modeled by 0.93.

The rate of change represents a decrease in value.  

The rate represents a 7% change per year.

Step-by-step explanation:

The rate of change in the value of the watch is modeled by 0.93.

The rate of change represents a decrease in value.  

The rate represents a 7% change per year.

The following information should be considered:

Since the function A(t) = 117(0.93)So it means that the rate of change should be modeled by 0.93.There is the reduction in the value. Also it is 7% change per year.

learn more: https://brainly.com/question/834969?referrer=searchResults

A soccer team is saving money to buy new uniforms. The total cost for the uniforms is $88.74. There are 9 players on the team, and each player needs to save the same amount.

How much money does each player need to save?

A
$9.86

B
$98.60

C
$798.66

D
$788.66

Answers

Answer: A

Step-by-step explanation: $88.74÷9=$9.86

$88.74 is the total amount

9 players, and each player has to pay the same amount

we have to divide it evenly in 9 pieces, so we divide $88.74 into 9 groups which then equals $9.86

Hope this helps!

aight man can someone help me lol

Answers

Answer: 11/24

Step-by-step explanation:

whenever u see this — (

it means the opposite of. so the opposite of -5/8 is +5/8.

-1/6 + 5/8 = 11/24

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