FIN 340 Short Selling Problems:
Use the old-fashioned (dollar return)/(dollar invested) approach.
You borrow 500 shares of ABC at $30/share and sell it. You deposit another $10,000 into your account as
margin. The total in cash will earn 3% but you will h
FIN 340: Weighted Average Problems
1. If a portfolio is composed of $7000 of Stock X and $13000 of Stock Y and X=0.7 and Y=1.2, what
is P= ?
2. If a portfolio is composed of $5000 of Stock X and $4000 of Stock Y and $11000 of Stock Z and
X=1.4 and Y=1.6 a
Practice problems
1. The returns of your $10,000,000 portfolio is skewed, Skew = -1.2. The mean is 0%, because of the short time
horizon. The standard deviation is 2%. Compute the 95% VaR with and without the adjustment to skewness.
VaR: 329000=10000000*1
FIN 340: Performance Measures Sample Problems
Compute the alpha, Sharpes measure and Treynor measure of performance in each of the following
cases.
1.
Return = 14%
Standard deviation = 25%
Beta = 1.3
Market return = 10%
Risk-free rate = 2%
2.
Return = 8%
MATH 411, Winter 2015, Handout for Lecture 3
1. Alzheimer’s (Chapter 21, problem 20, page 522)
A sereening test for Alzheimer’s disease was developed for use in the general population of senior
citizens. The test has a false positive rate of 4%, i.e. P( T
Bianca Williams
Statistics I
5/27/2015
Joint probability table:
Gender -Male- Female-Total
Favor-0.25-0.05-0.30
Opposed-0.15-0.55-0.70
Total-0.40-0.60-1.00
A) What is the probability of a randomly selected resident being in favor of the bridge?
a) 0.30
B)
Improved Statistical Test for
Multiple-Condition Microarray
Data Integrating ANOVA with
Clustering
Jared Friedman
1
This research was done at The Rockefeller
University and supervised by Brian Kirk2
1. 180 East End Ave, New York, NY, 10128. Email: vicvic@