Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32. She has decided to hedge this portfolio using SPX
1 answer:
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Answer: 4 years
Explanation:
First find the amount Rula borrowed from her hometown bank:
= Price of car - Down payment
= 15,000 - 2,000
= $13,000
The amount that Rula is to pay is an annuity. The loan is the present value of that annuity.
Present value of annuity = Annuity * Present value interest factor of annuity
13,000 = 4,280 * Present value interest factor of annuity
Present value interest factor of annuity = 13,000 / 4,280
= 3.0373
Use an annuity table to find out the year that 12% as a discount rate intersects with, such that the present value of interest factor of annuity is 3.0373.
That number is:
= 4 years
Answer:
Mean = 47
Median = 47.38
Standard Deviation = 12.73
Explanation:
Note: You wrote " 40 manufacturing companies, but the total number of companies you actually listed is 75, definitely you meant 75.
Let y represent the range of advertising expenditure, f represent the number of companies, x represent the midpoint of the range of advertising expenditure.
y f x fx fx²
$20 to under $30 9 25 225 5625
$30 to under $40 13 35 455 15925
$40 to under $50 21 45 945 42525
$50 to under $60 18 55 990 54450
$60 to under $70 14 65 910 59150
n = 75
Mean,
Standard Deviation:
Median:
Get the cumulative frequencies(cf)
y f cf
$20 to under $30 9 9
$30 to under $40 13 22
$40 to under $50 21 43
$50 to under $60 18 61
$60 to under $70 14 75
N = 75
Median = Size of (N/2)th item
Median = Size of (75/2)th item
Median = Size of (37.5)th item
The median class = 40 to under 50
Lower limit, L₁ = 40
Cumulative frequency, cf = 22
f = 21
Class Width, h = 10
Median =
Median =
Median = 47.38