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

Jade can travel 42 miles in 4 hours please calculate jade rate of speed. (Round to 2 decimal places)

Answers

Answer:

10.50 mph

Step-by-step explanation:

S=d/t

S=42/4

S=10.50

Find the distance between the two points rounding to the nearest tenth (if necessary).
(4,2) and (1, -2)

Answers

Answer:

5 units

Step-by-step explanation:

Calculate the distance d using the distance formula

d = [tex]\sqrt{(x_{2}-x_{1})^2+(y_{2}-y_{1})^2 }[/tex]

with (x₁, y₁ ) = (4, 2) and (x₂, y₂ ) = (1, - 2)

d = [tex]\sqrt{(1-4)^2+(-2-2)^2}[/tex]

   = [tex]\sqrt{(-3)^2+(-4)^2}[/tex]

   = [tex]\sqrt{9+16}[/tex]

   = [tex]\sqrt{25}[/tex]

   = 5

 

how many 9 are present from 1 to 10000​

Answers

Answer:

300

Step-by-step explanation:

Answer:

The digits 9 occurs in the thousands place in 1000 numbers. The digit occurs 4000 times.

Step-by-step explanation:

2(1-x) + 3x


Pls help I only have 24 minutes

Answers

Answer:

x+2

Step-by-step explanation:

i can confirm that the answer above this is correct

How do i find the slope-
20 points answer!
[imagine below included!]

Answers

Answer:

3/3 = 1

Step-by-step explanation:

The slope formula is..

Pick two formulas. Let's do (-5, -2) and (-2, 1)

x1  y1   x2 y2

(-5, -2)   (-2, 1)

[tex]\frac{1-(-2)}{-2-(-5)}[/tex]    =   [tex]\frac{3}{3}[/tex]  = 1

It'll work the same thing for (-2, 1) and (1,4)...

3/3 or 1 is a pattern between the points.

 

Why did a gacha yt ad pop up when my teacher put up a yt vid

Answers

Answer:

she watching u

Step-by-step explanation:

Can you please give more details it’s would help a lot

Harriet buys lunch at school every day. She always gets
pizza when it is available. The cafeteria has pizza about 80% of the time.

Harriet runs a simulation to model this using a random
number generator. She assigns these digits to the possible outcomes for each day of the week:

• Let 0 and 1 = no pizza available

• Let 2, 3, 4, 5, 6, 7, 8, and 9 = pizza available

The table shows the results of the simulation.

Group number
Random digits
1: 19223
2: 73676
3: 45467
4: 52711
5: 95592

Group number
Random digits
6: 68417
7: 82739
8: 60940
9: 36009
10: 38448

What is the estimated probability that Harriet will eat pizza for lunch
every day next week?

A. 7/10 = 70%
B. 4/10 = 40%
C. 5/10 = 50%
D. 0/10 = 0%

Answers

The estimated probability that Harriet will eat pizza for lunch every day next week is 5/10 = 50%

How to determine the probability?

The simulation is represented as:

0 and 1 represents when pizza is not available2 to 9 represents when pizza is available

The above means that the simulation that represents when she eats pizza for lunch must have all its digits to be from 2 to 9.

The results that represent eating pizza for lunch are:

73676 45467 95592 82739 38448

The count of the result is 5.

Hence, the probability is 5/10 = 50%

Read more about probabiity at:

https://brainly.com/question/251701

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one gallon of gasoline in Buffalo New York cost $2.29 and Toronado Canada one liter of gasoline cost 91 cents there are 3.8 liters in one gallon how much does one gallon of gas cost in tornado round your answer to the nearest cent is the cost of gas crater in Buffalo or tonado how much GREATER ​

Answers

For one gallon of gas in Canada it would cost 3.45, and since it only costs 2.29 in New York.. Tonado has the greater price for gas

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

expand to write an equivalent expression -1/4(-8x+12y)

Answers

Answer

2x-3y

Step-by-step explanation:

An AutoCAD drawing has a scale of 3/4 inches to 2 ft. If a piece of a bridge measures 15 feet, how long is that piece in the AutoCAD printout?


11.25 inches

5.625 inches

22.5 inche

51 inches
Please I really need this for tonight

Answers

The answer is B) 5.625 inches

Answer:

B) 5.625 inches

Step-by-step explanation:

Tukey HSD Interpretation
Criterion: Interpret Tukey HSD results from SPSS output.
Data: Use your output from Problem Set 4.6.
Instructions: Identify where significant differences exist at the .05 level between the stress levels.

Answers

Answer:

The solution can be defined as follows:

Step-by-step explanation:

They also have a significant outcome in our instance. Its value of F is 1.773, with such a p-value of 0.212 achieved meaning (which is greater than the .05 alpha level). It means that the press with different levels of stress of the stress variable may not differentiate objectively.

Even so, we still do not know which one of the multiple mechanisms is significant. They realize the diff. To do just that, the results of the Tukey HSD test should be regarded.

HSD Tukey

Looking at the Multiple Correlations table below, you will see that mean values were created for the standard deviation among pairs of various stress varying concentrations (High - Low; High - Medium )

This can be seen on one-way ANOVA(1.773, p=.212), there's no statistically significant difference between the groups. A Tukey post hoc study has observed that the increase among medium and high stress is statistically significant, as well as the difference among low, medium, and high stress is important.

Quadrilateral ABCD has vertices A (-5,2), B (-3, 6), C (6,6), and D. What
are the coordinates of D?
5
0
5
O (6,2)
(4,2)
O (-4,2)
.O (2,4)

Answers

Answer: 6,2

Step-by-step explanation:

Witch ratio is less than 15/24

Answers

Answer:

Answer choices: 1/2, 7/8, 19/24, 6/8.

Step-by-step explanation:

One hundred students go to the cafeteria to eat lunch. Six tables held the same amount of students while an additional 10 students stood in line. Which equation can be used to find the number of students sitting at each table?


1. 100 + 6 x = 10

2. 100 = 10 x + 6

3. 10 x - 100 = 10

4. 6x + 10 = 100

Answers

I think I that the answer is the f o u r t h
one

Do this very simple equation for monE

Answers

Answer:

Were my money?

Step-by-step explanation:





May I have brainliest please I'm trying to level up!

</3 PureBeauty

X
Which of the following best forms the figure shown?
2 angles that meet at an endpoint
2 rays that meet at an endpoint
2 lines that meet at an endpoint
2 line segments that meet at an
endpoint

Answers

Answer:

2 angles that meet at an endpoint

As per the image, we can say that 2 rays that meet at an end point.

Option 2 is correct.

What is a ray?

A ray is a part of the line having one fixed point and the other point does not have an end.

As per the image, we can say that 2 rays that meet at an end point.

Because 2 rays meet at a point and another side arrow is shown in image.

Hence, option 2 is correct.

Find out more information about ray here

https://brainly.com/question/10404182

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12x-20=n(3x-5) plzzzz help fast

Answers

Answer:

n=4 x=4

Step-by-step explanation:

3-5 = -2

12-20 = -8

find their what they have in common = 4

12·4= 48

3·4= 12

rearrange = 48-20 = n (12-5)

we should end up with 28 = n · 7

now we just need to figure out what ? · 7 = 28 which is 4

n = 4

I'm not sure if I did this correctly but I hope it helps

a/-b in standard form

Answers

It can't be write in a standard form

Solve for N. Express the solution in decimal form.

Answers

Answer:

N= 3.8

Step-by-step explanation:

Answer:

3.8

Step-by-step explanation:

i did this on iready and this was the answer.

solving 2 step inequalities give three solutions for each inequality 1/5(y+10) is < or = -25

Answers

Answer:

-25

Step-by-step explanation:

Answer:

Any solution less than or equal to -115 would count. So three solutions could be -115, -116, and -117.

Step-by-step explanation:

[tex]\frac{1}{5} (y+10)\leq -25\\\frac{y}{5}+2\leq -25\\\frac{y}{5}\leq -23\\y\leq -115[/tex]

three times a number added to 15 .

Answers

Answer:

i say 45

Step-by-step explanation:

Answer:

5×3=15

so, definitely answer is 5

;-))

What does 58/6 equal

Answers

Answer:

9.66666666667

Step-by-step explanation:

The fraction 58

6

is equivalent to 9 2

3

.

This fraction is a improper fraction once the absolute value of the top number or numerator (58) is greater than the absolute value of the bottom number or denomintor (6). So, the equivalent fraction is a mixed number which is made up of a whole number (9) and a proper fraction (2

3

).

The fraction 58

6

is equal to 58÷6 and can also be expressed as a decimal as 9.66667 and expressed as a percentage as 966.7%.

V(x) is a function.
3
ол о
2
10
1
15
0
V(x)
True or false ???

Answers

Answer:

The statement 'V(x) is a function'' is False.

Step-by-step explanation:

Let us make the table from the given mapping

x         y

0        0

5         2

5         1

10        2

15        3

We know that a function is a relation where each input or x-value of the X set has a unique y-value or output of the Y set.

If we observe the table, it is clear that x = 5 is repeated twice. It means the input x = 5 is duplicated.

In other words, we can not have duplicated inputs as there should be only 1 output for each input.

Therefore, V(x) is not a function.

Hence, the statement 'V(x) is a function'' is False.

What is the distance between -60 and -10 on
a number line?
units
90-80 -70 -60 -50-40-30-20 - 10
0
10

Answers

Answer:

50

Step-by-step explanation:

60-10

What is the value of 11 + 3(9 – 6) – 4?
A) 12
B) 16
C) 18
D) 22

Answers


the answer will be 16 (B)

Answer:

B i just copied the other person

Step-by-step explanation:

Order from least to greatest: 0.84, 0.084, 84, 8.4
Group of answer choices

Answers

0.084, 0.84, 8.4, 84

Answer:

0.084 , 8.4, 0.84, 84     sorry if im wrong

Step-by-step explanation:

Work out the area of the triangle.

Answers

Answer:

30

Step-by-step explanation:

1/2(12)(5)

Answer:

30

Step-by-step explanation:

The area of a triangle is 1/2 bh

b= base, in this case 12 cm

h= height, in this case 5 cm

so you multiply 5 times 12 and you get 60

You take that 60 and half it to get your answer of 30.

What is the sound intensity of a noise that is 130 dB

Answers

Answer:

10 watts per squares meter

Answer: When the defining level of 0 decibel (10-12 watt per square metre) is taken to be at the threshold of hearing for a sound wave with a frequency of 1,000 hertz, then 130 decibels (10 watts per square metre) corresponds to the threshold of feeling, or the threshold of pain.


I hope this helps!

Share £360 in the ratio 2:7

Answers

Answer:

80:280

Step-by-step explanation:

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