Assume that historical returns and future returns are independently and identically distributed and drawn from the same distribution. a. Calculate the 95 % confidence intervals for the expected annual return of four different investments included in the tables LOADING... (the time period spans 92 years). b. Assume that the values in the tables are the true expected return and volatility (i. e., estimated without error) and that these returns are normally distributed. For each investment, calculate the probability that an investor will not lose more than 1 % in the next year. (Hint: For each investment, you can use the function normdist(x, mean, volatility,1) in Excel to compute the probability that a normally distributed variable with a given mean and volatility will exceed x where x in this case is negative 1 %. Then subtract that probability from 100% to find the probability that an investor will not lose more than 1 %.) c. Do all the probabilities you calculated in part (b) make sense? If so, explain. If not, can you identify the reason?

Brenda wants a new car that will be dependable transportation and look good. she wants to satisfy both functional and psychological needs. true or false

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u. s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.