There is no flexiability; answers are needed by 7:18 E.S.T.

24 multiple choice questions; ...

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There is no flexiability; answers are needed by 7:18 E.S.T.

24 multiple choice questions;  Economics 101.

Questions are attached.
	
Document Preview: Question 1Please select the correct statement(s) from the below choices.Covariances lie between 0 and 1. Two random variables with zero correlation tend to move in opposite directions. Two random variables with positive correlation tend to move in the same direction. Mean and variance are measured in the same units. None of the above statements are correct. Question 2Please use the information below to answer Questions 2 through 7. The stocks of two companies, the Banana Company and the Orange Company, have the following payoff distributions over 4 possible states of the world. BananaOrangeProbabilityState 1380.30State 22110.35State 31210.25State 4920.10What is the mean payoff of Banana stock?   Please give answer correct to three decimal places. For example, if the correct answer is XXXXXXXXXX, please enter 10.256 Question 3What is the mean payoff of Orange stock?   Please give answer correct to three decimal places. For example, if the correct answer is XXXXXXXXXX, please enter 10.256 Question 4What is the standard deviations of Banana stock?   Please give answer correct to three decimal places. For example, if the correct answer is XXXXXXXXXX, please enter 10.256 Answer for Question 4Question 5What is the standard deviation of Orange stock?   Please give answer correct to three decimal places. For example, if the correct answer is XXXXXXXXXX, please enter 10.256 Answer for Question 5Question 6Take a portfolio with weight ? = 0.25 in Banana and weight 1 - ? = 0.75 in Orange. What is the mean payoff of this portfolio?   Please give answer correct to three decimal places. For example, if the correct answer is XXXXXXXXXX, please enter 10.256 Question 7What is the standard deviation of the portfolio in Question 6?   Please give answer correct to three decimal places. For example, if the correct answer is XXXXXXXXXX, please enter 10.256 Question 8Mehmet has 45% of his money in the stock of the Blue Corporation, and the remainder of...

David · Accepted Answer

Question 1 
Please select the correct statement(s) from the below choices. 
Covariances lie between 0 and 1.  
Two random variables with zero correlation tend to move in opposite directions.  
Two random variables with positive correlation tend to move in the same direction.  
Mean and variance are measured in the same units.  
None of the above statements are correct.  
Question 2 
Please use the information below to answer Questions 2 through 7. The stocks of two companies, 
the Banana Company and the Orange Company, have the following payoff distributions over 4 
possible states of the world.  
 
Banana Orange Probability 
State 1 3 8 0.30 
State 2 2 11 0.35 
State 3 12 1 0.25 
State 4 9 2 0.10
What is the mean payoff of Banana stock?   Please give answer correct to three decimal places. 
For example, if the correct answer is 10.2556, please enter 10.256  
Mean payoff of Banana stock = 3*0.30 + 2*0.35 + 12*0.25 + 9*0.10 = 5.50 
Question 3 
What is the mean payoff of Orange stock?   Please give answer correct to three decimal places. 
For example, if the correct answer is 10.2556, please enter 10.256  
Mean payoff of orange stock = 8*0.30 + 11*0.35 + 1*0.25 + 2*0.10 = 6.70
Question 4 
What is the standard deviations of Banana stock?   Please give answer correct to three decimal 
places. For example, if the correct answer is 10.2556, please enter 10.256  
Answer for Question 4
  Banana (X) Probability (X-E(x))^2 
State 1 3 0.3 6.25 
State 2 2 0.35 12.25 
State 3 12 0.25 42.

There is no flexiability; answers are needed by 7:18 E.S.T. 24 multiple choice questions; Economics 101. Questions are attached. Document Preview: Question 1 Please select the correct statement(s)...

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