Bridgette went to the gap ready to buy a new shirt, but was not sure which color or style she wanted. the sales representative,
1 answer:
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Answer:
Holding period return = 14.49%, Standard Deviation = 11.08 approx
Explanation:
Eco Scenario Dividend Stock Price HPR Prob Expected HPR
Boom 3 60 26 0.33 8.58
Normal 1.2 58 18.4 0.33 6.072
Recession 0.75 49 (0.5) 0.33 <u> (0.165)</u>
Expected HPR 14.49%
<u>Calculation Of Standard Deviation</u>
(A) (B) (A) - (B)
Given return Exp return d p
60 50 3 26 14.49 11.51 0.33 43.718
58 50 1.2 18.4 14.49 3.91 0.33 5.045
49 50 0.75 (0.5) 14.49 14.99 0.33 <u> 74.15</u>
Total = 122.91
wherein, d = deviation
p = probability
Standard Deviation = =
= 11.08
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<u>Working Note</u>:
Holding period return =
Boom = = 26%
Similarly, for normal = = 18.4%
Recession = = (0.5)%
figure in bracket indicates negative return
Answer:
So the answer for this case would be n=12 rounded up to the next integer
Explanation:
represent the sample mean
population mean (variable of interest)
s=840 represent the sample standard deviation
n represent the sample size
The margin of error is given by this formula:
(a)
And on this case we have that ME =150 and we are interested in order to find the value of n, if we solve n from equation (a) we got:
(b)
The critical value for 95% of confidence interval, the significance level if 5% and the critical value would be , replacing into formula (b) we got:
So the answer for this case would be n=12 rounded up to the next integer