The recent performance of Prudent Fund,with USD 50 million in assets,has been weak and the institutional sales group is recommending that it be merged with Aggressive Fund,a USD 200 million fund.
A risk manager is calculating the VaR of a fund with a data set of 25 weekly returns.
You are running a Monte Carlo simulation to price a portfolio of options.When generating random numbers for use in the simulation:
The following graphs show the cumulative distribution function(CDF)of four different random variables.
An insurance company estimates that 40%of policyholders who have only an auto policy will renew next year,and 60%of policyholders who have only a homeowner policy will renew next year.
Assume that a random variable follows a normal distribution with a mean of 80 and a standard deviation of 24.
Suppose that a quiz consists of 20 true-false questions.A student has not studied for the exam and just randomly guesses the answers.How would you find the probability that the student will get 8 or fewer answers correct?
For a sample of the past 30 monthly stock returns for McCreary,Inc.
Basic risk types,measurement and management tools
Portfolio 1 is not efficient because it has a lower expected return and higher risk than both Portfolios 2 and 3.