Exam 11: Decisions, uncertainty, and Risk

Below is a spreadsheet for a situation in which a day trader wants to decide on investing $150 in one of the index funds. Answer the following question(s) using PHStat. -What are the expected opportunity losses for both R and S index funds? Show the opportunity loss table.

Use the table below to answer the following question(s). Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds. Answer the following questions using PHStat. -The covariance between these two assets indicates that ________.

If IRR is greater than the hurdle rate,the management should reject the project.

What is the terminal value if the development is stopped after clinical trials conducted are successful?

Use the table below to answer the following question(s). Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds. Answer the following questions using PHStat. -For the given two-asset portfolio,what is the portfolio risk?

Use the table below to answer the following question(s). Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds. Answer the following questions using PHStat. -What is the variance of the W index fund?

The standard deviation of the portfolio is larger if the covariance is negative.

Repetitive decisions have little financial impact and are not considered very risky.

What is the terminal value when the market potential is small?

What is the probability of the drug getting to a market of medium potential?

Explain the process of making decisions with uncertain information.

Below is a decision tree for the airline revenue management.Create a one-way data table to answer the following question(s). -If the probability of selling the full-fare air ticket is 0.90,the best decision is to discount the price.

Use the below payoff table with four mortgage options to answer the following question(s). -What is the worst payoff rate for the 5-year ARM?

Use the table below to answer the following question(s). Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds. Answer the following questions using PHStat. -Which index fund has the lowest expected monetary value?

Use the below payoff table with four mortgage options to answer the following question(s). -Which of the following decisions is chosen in a minimax strategy?

Below is a decision tree for the airline revenue management.Create a one-way data table to answer the following question(s). -If the probability of selling the full-fare air ticket is 0.65,the best decision is to discount the price.

Use the table below to answer the following question(s). Below is a spreadsheet for a situation in which a day trader wants to decide on investing $200 in one of the index funds. Answer the following questions using PHStat. -What is the standard deviation of the X index fund?

Use the below payoff table with four mortgage options to answer the following question(s). -Which of the following decisions is chosen in a minimax regret strategy?

Which of the following is a decision node?

Below is a spreadsheet for a situation in which a day trader wants to decide on investing $150 in one of the index funds. Answer the following question(s) using PHStat. -What is the coefficient of variation of the S Index Fund?