Find the probability of a fund having a high one-year

Assignment Help Finance Basics
Reference no: EM13576710

Data on the 30 largest bond funds provided one-year and five-year percentage returns for the period ending March 31, 2000 (The Wall Street Journal, April 10, 2000). Suppose we consider a one-year return in excess of 2% to be high and a five-year return in excess of 44% to be high. One-half of the funds had a one-year return in excess of 2%, 12 of the funds had a five-year return in excess of 44%, and six of the funds had both a one-year return in excess of 2% and a five-year return in excess of 44%.

a. Find the probability of a fund having a high one-year return, the probability of a fund having a high five-year return, and the probability of a fund having both a high one-year return and a high five-year return.

b. What is the probability that a fund had a high one-year return or a high five-year return or both?

c. What is the probability that a fund had neither a high one-year return nor a high five-year return?

Reference no: EM13576710

Questions Cloud

Phyllis maintained an ira account at the brokerage firm abc : scenario phyllis maintained an ira account at the brokerage firm abc. on february 11 of the current year she requested
If given a random sample size from a normally distributed : if given a random sample size from a normally distributed population the mean of the sample and the standard
Nyota corp sells two products product a sells for 100 per : nyota corp sells two products. product a sells for 100 per unit and has unit variable costs of 60. product b sells for
Construct the table of pay-offs ie the expected profits to : question two builders a and b are competing for a contract to construct a new office block. each can bid either
Find the probability of a fund having a high one-year : data on the 30 largest bond funds provided one-year and five-year percentage returns for the period ending march 31
The rejection region of a hypothesis test is : the rejection region of a hypothesis test is fgtf0.0511112.82 and the test statistic is f2.2644 at a level of
Without further calculation sketch the pay-off set and : question two opponents a and b are to play a game which consists of two indenotpendent rounds. to win the game a
Last month kallina company had a 9202 profit on sales of : last month kallina company had a 9202 profit on sales of 285000. fixed costs are 113348 a month. what sales revenue is
The stockholdersu2019 equity accounts of ashley corporation : the stockholdersu2019 equity accounts of ashley corporation on january 1 2012 were as follows.preferred stock 8 49 par

Reviews

Write a Review

Finance Basics Questions & Answers

  Perform a comparative analysis of eastman corporation by

perform a comparative analysis of eastman corporation by completing the analysis below. describe and comment on any

  What is the receivables turnover

Essence of Skunk Fragrances, Ltd., sells 8,700 units of its perfume collection each year at a price per unit of $730. All sales are on credit with terms of 2/15, net 60. The discount is taken by 80 percent of the customers.

  What would be the money multiplier

The SIMPLEX financial system is characterized by a require reserves ration of 11 percent; initial excess reserves are 1 million, and there are no currency or other leakages.

  A 1000 par bond with an annual coupon has only 1 year

a 1000 par bond with an annual coupon has only 1 year until maturity. its current yield is 6.713 and its yield to

  Wheeler has a beta of 16 the return on the market is

wheeler inc. is presently in a stage of abnormally high growth because of the excess demand for widgets. the company

  Calculate the value of each investment

Assume Emerson Electric's managers expect an earnings downturn and a resulting decrease in growth of 3 percent. How does this affect your answers to parts a and b?

  Determine the expected value payment of each of the options

cameron is an investor trying to decide among the following three different investment options.option a price today

  Risk is a major concern of almost all investors

Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risks with those funds.

  What price should it charge per pair of flip flops

If Politically Expedient Footwear prices the order with a 34% markup, what price should it charge per pair of flip flops?

  Project l costs 52125 its expected net cash inflows are

project l costs 52125 its expected net cash inflows are 12000 per year for 8 years and its wacc is 12 percent. what

  To save for her newborn sons college education lea wilson

to save for her newborn sons college education lea wilson will invest 1000 at the beginning of each year for the next

  What is the present value of expected future stock price

Given that the first dividend [ayment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3 and then sum these PVs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd