Answered: b) You decide to buy 10,000 shares of…

b) You decide to buy 10,000 shares of each company. If the covariance between ABC and XYZ is 0, what is the expected return and standard deviation of your portfolio over the next year?

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.3: Special Probability Density Functions

Problem 28E

See similar textbooks

Related questions

Q: Suppose a customer gets 6 questions correct in the quiz. The [Select] hypothesis for a statistical…

A: Given that,No. of multiple choice question The probability that the answer is correct

Q: A marketing expert for a pasta-making company believes that 50% of pasta lovers prefer lasagna. If…

A: A marketing expert for a pasta-making company believes that 50% of pasta lovers prefer lasagna. 13…

Q: Problem 1. Suppose there is a box of cash consisting of $1, $2, $5, $10, 20$, 50$, 100$ bills, and…

A: The normal worth of the bill is roughly $26.86Explanation:To find the normal worth of the bill, we…

Q: Please help me with this excel homework. Thank you so much! ف Generated Numbers FeedBack 1 2 3 4…

A: The objective of this question is to generate a sequence of 100 numbers starting from 3 and…

Q: pre-test post-test Mean -2.25 0.75 Variance 9.30 13.30 T Observations 12 12 Pearson Correlation…

A: The objective of the question is to determine the correct interpretation of the results of a t-test…

Q: Researchers investigated whether a new process for producing yarn could reduce the mean amount of…

A: The objective of the question is to interpret the p-value in the context of the given hypothesis…

Q: Q1]. [30%] The data for this question given in the table below come from the sample data folder of…

A: The objective of this question is to analyze the given time series data of monthly employment in the…

Q: probability density

Q: 1. You are interested to find the average number of hours an individual works per week in the USA.…

A: 1) single-stage cluster sampling 2) Clusters 3) Individuals in the cities 4) multi-stage cluster…

Q: Kindly assist with creating bar charts, or pie charts for the below results; The results of this…

A: Department Distribution (Bar Chart):Here, the bar chart is used to represent the distribution of…

Q: An article presents the results of an experiment in which the surface roughness (in μm) was measured…

A: The predicted value (y) is given.Want to calculate a 95% confidence interval for the mean…

Q: 22.) The average of 18 numbers is 76. The difference between the largest umber and the smallest…

Q: Suppose that the average number of miles driven by a student is 15,000 and the standard error is…

A: Here sample size is not given and we know standard error and hence use z statistic to construct…

Q: Problem 2. Suppose we have two independent random variables R ~ Unif [0, 1] and O ~ Unif [0,2].…

A: The expected area of the pizza slice is π/6.Explanation:To find the expected area of the pizza…

Q: Complete the following missing numbers (calculated F, P-value, and F critical), for the one- factor…

Q: A newly installed automatic gate system was being tested to see if the number of failures in 1,000…

A: The data is given asTruckEntry failuresExit failures1445024053355554565656255652507455184547sample…

Q: The shares of the U.S. automobile market held in 1990 by General Motors, Japanese manufacturers,…

A: A survey of new buyers shows the following purchase…

Q: The director of the advertising section in a large newspaper is studying the relationship between…

A: The relationship within the community type in which a subscriber resides and the newspaper section…

Q: If random variable X is such that E[(X-1)]=10, E[(X-2)] = 6, what is σ'

Q: Calculate the F critical value for the dataset below. Group1 Group2 Group3 Group4 Group5 69 77 36 45…

A: From the provided information,Number of groups (k) = 5Total sample size with all groups (N) = 28

Q: A state government is planning to construct a new bridge over a river to improve transportation…

A: Explanation: To calculate the total cost of constructing the bridge, we need to sum the costs of the…

Q: A random sample of 100 automobile owners in a region shows that an automobile is driven on average…

A: The random sample size of automobile owners, The mean distance automobile is driven, kmsStandard…

Q: use a 0.05 signifigance level to test the claim that peanut candy have weights that vary more than…

A: α=0.05,σ=0.367,s=0.37,n=51

Q: A manufacturer claims that the average tensile strength of thread A exceeds the average tensile…

A: For sample 1:-The sample mean is 82.9The sample standard deviation is 7.12The sample size is 48For…

Q: Use the following table: $ 210 290 286 $ 505 480 410 $ 310 550 305 $ 380 $ 275 490 200 444 368…

A: Frequency distribution is a tabular or graphical representation of data. It shows the number of…

Q: A result is called "statistically significant" whenever Question 1Answer a. The p-value is…

A: The objective of the question is to identify the correct condition under which a result is…

Q: Using the accompanying New Account Processing data, perform chi-square tests for independence to…

A: The new account processing data of gender and their certification is provided as…

Q: set so that the true average diameter of the bearings it pro- duces is .500 in. A bearing is…

A: Let X be the diameter of the bearing.Given that, X is normally distributed with mean µ=0.499 inches…

Q: You are trying to find how many prefer to drink beer in a bar and how many prefer not to drink beer…

A: To determine the variability of preferences for drinking beer in the bars, we can calculate the…

Q: Exercise: Motorcycle Oil Cans of motorcycle oil are supposed to contain 16 ounces of oil (on the…

A: To determine the conclusion at the 10% and 1% level of significance, we need to conduct hypothesis…

Q: Dont copy from Quizlet not chat gpt not online any source. Just solve accurate ur ownexperty

A: The objective of this question is to test the hypothesis that hypnosis is more effective than the…

Q: A study was conducted to explore the possibility of a audiobook treatment effect on sleep quality…

A: uber drivers are involved at one version of the study.The study was conducted to explore the…

Q: Solve this for me

A: The objective of this question is to find the probability that at least 4 out of 6 surgeries are…

Q: Frequency • Identify and describe the outliers Outliers - Feature1 10 10 OF Frequency 101 100 OOF 10…

A: An outlier in statistics is basically referred to as a data point that is abnormally at a much…

Q: list all the variables (listed in the rows) that showed significant associations with participants'…

A: The objective of the question is to identify the variables that have a significant association with…

Q: A company produces two types of products: Product A and Product B. The production process for each…

A: Overall Defect Rate Calculation:To find the overall defect rate for the company, we need to consider…

Q: What is the standard error of the following numbers: 1,2,3,4,5

A: Given that,Sample size

Q: The lifespan of xenon metal halide arc-discharge bulbs for aircraft landing lights is normally…

A: n=9,x¯=2826,μ=2400,σ=570α=0.01

Q: scientist claims that pneumonia causes weight loss in mice. The table shows the weights (in grams)…

Q: 5. Two 99 percent confidence intervals will be constructed to estimate the difference in means of…

A: The objective of the question is to understand the relationship between the widths of two confidence…

Q: Question 8. This question is similar to Exercise 11 on page 363 of your textbook. Let t be a…

A: In Microsoft Excel, the functions mentioned above are part of the statistical functions category and…

Q: Let hat(\beta ) be the (k+1)\times 1 vector of OLS estimates.(i) Show that for any (k+1)\times 1…

A: The objective of the question is to prove a series of mathematical identities related to the…

Q: can you complete the follow up question i posted

A: Let be the rth central moment and be the rth raw moment.To find the third central moment.It is…

Q: A gambling game pays 4 to 1 and has one chance in five of winning.Suppose someone plays the game 50…

A: A gambling game pays 4 to 1 and has one chance in five of winning. Suppose someone plays the game 50…

Q: Let the continuous random variable X denote the current measured in a thin copper wire in…

A: The continuous random variable X denotes the current measured in a thin copper wire.The probability…

Q: Calculate the z-score of the given x value, x = 52, where u = 46.6 and σ = 41.9. Round your answer…

A: Random variable X with mean, μ=46.6 and standard deviation =41.9.To find the Z score at X=52

Q: According to one study, brain weights of men are normally distributed with a mean of 1.40 kg and a…

A: Brain weight follows the normal distribution with a mean of 1.4 kg and a standard deviation of 0.12…

Q: An article in the Journal of the American Statistical Association [Illustration of Bayesian…

A: From the provided information,The study is measured weight of 30 rats under experiment controls in…

Q: The life of automobile voltage regulators has an exponential distribution with a mean life of six…

A: To solve this problem, we can use the properties of the exponential distribution.Given:The voltage…

Q: An insurance company is trying to determine if there is a significant difference in the mean…

A: k = 3 goups or treatment

Question

b) You decide to buy 10,000 shares of each company. If the covariance between ABC and XYZ is 0, what is the expected return and standard deviation of your portfolio over the next year? 1

Definition Definition Measure of how two random variables change together. Covariance indicates the joint variability or the directional relationship between two variables. When two variables change in the same direction (i.e., if they either increase or decrease together), they have a positive covariance. When the change is in opposite directions (i.e., if one increases and the other decreases), the two variables have a a negative covariance.

Expert Solution