Control Limits
K= # of samples
n= sample size
mu= know population mean
sigma= known population standard deviation
mu-hat= estimated sample mean = x double bar
x-double bar= average of sample means
s-b
N= time in years
I%= YTM
Zero coupon YTM= 0 in PMT, alpha ENTER in I%
Flat price= Rate over par value x par value
PMT= coupon rate in dollars
Annual Coupon Payment
of payments per yr
Accrued Interest
John Schoenneman
UIN: 662-33-9485
Exam Question 6: Simpsons Paradox
1. From the aggregate data it seems that the school has a higher acceptance rate of women as
opposed to men, but when you look at th
The bid price is the price a dealer is willing to pay you for something.
o
The ask price is the amount a dealer wants you to pay for something.
o
the bid-ask spread is the difference between the bid
*Planned purchase at retail price
o = Planned Sales for the month + Planned Retail Reductions
for the month + Planned EOM stock for the month - Planned
BOM stock for the month
*Planned purchase at c
Money market Hedge=To hedge a foreign currency payable, buy the present value of that
foreign currency payable today and put it in the bank at interest.(2) Buy the present value of the
foreign curren
Warehouse Purchase in West Chester
Amount of Loan
Period (years)
Interest rate (per year)
Payment (per month)
$925,000
10
6.50%
$10,503.19
Option #1 Reduce the Loan
Amount of Loan
Period (years)
Inter
Money Market
instruments
Separating the legal entity-A corporation is a business entity, legally separate from its owners and employees
Features
Stock holders have limited liability regarding the cor
Control Limits
K= # of samples
n= sample size
mu= know population mean
sigma= known population standard deviation
mu-hat= estimated sample mean = x double bar
x-double bar= average of sample means
s-b
Real Assets- Factories, Cars, anything that needs
financial assets to be created
Financial Assets- Cash, loans, stocks. Any
nonphysical financial tool or monetary tool.
Price-weighted average: Compute