Referee Report for Economics Manuscript

“Different Risk-Adjusted Fund Performance Measures: A Comparison” Summary This paper compares various risk-adjusted performance measures for a set of mutual funds. The authors argue that performance measures based on Value-at-Risk (VaR) or Extreme Value Theory (EVT) are more appropriate than other popular performance measures such as the Sharpe ratio (SR), the Treynor index (TI) or… View Article

Quantitative Methods for Finance and Investment

University of Bristol – School of Economics, Finance and Management QUANTITATIVE METHODS FOR FINANCE AND INVESTMENT (EFIMM005) Review Questions Question 1: Concepts a. Deﬁne a stochastic process. Give an example in Finance of a quantity that can be modelled as a stochastic process. b. Deﬁne a stationary stochastic process. c. Consider a stochastic process {Yt… View Article

The Central Limit Theorem

A long standing problem of probability theory has been to find necessary and sufficient conditions for approximation of laws of sums of random variables. Then came Chebysheve, Liapounov and Markov and they came up with the central limit theorem. The central limit theorem allows you to measure the variability in your sample results by taking… View Article

Econometrics Chapter Summaries

2) Basic Ideas of Linear Regression: The Two-Variable Model In this chapter we introduced some fundamental ideas of regression analysis. Starting with the key concept of the population regression function (PRF), we developed the concept of linear PRF. This book is primarily concerned with linear PRFs, that is, regressions that are linear in the parameters… View Article

Probability Solution Formula

14. If x has the probability distribution f(x) = 12x for x = 1,2,3,…, show that E(2X) does not exist. This is famous Petersburg paradox, according to which a player’s expectation is infinite (does not exist) if he is to receive 2x dollars when, in a series of flips of a balanced coin, the first… View Article

Essay Questions

Essay 1 In an experimental research, the use of a research question answers the thesis statement that enables one to research about a problem (Yin, 2013). From the experiment, the research question can be clearly stated as “which vaccine is more effective for preventing getting the flu”. In this case, the problem being researched about… View Article

Problem Set

What is sampling error? It is the difference between the sample mean and the population mean Could the value of the sampling error be zero? Yes it is possible to have a zero sampling error. However, it is very low probability that this could happen. If it were zero, what would this mean? This means… View Article

Variance analysis

When dealing with profitability, every company has to make a good decision. It is quite critical for manager to use the variance analysis tools properly. By using variance, managers can make adjustment on their company performance in order to achieve the highest profit. Variance is actually a difference between actual and what planned. What we… View Article

Budgeting and Performance Evaluation at the Berkshire Toy Company

Executive Summary In 1974, Berkshire Toy Company (BTC) was founded by Franklin Berkshire, Janet McKinley’s farther. Janet was soon became the CEO of the company when her father retires on 1993. After two years, BTC was acquired by Quality Products Corporation, a manufacturer of different products, for a common stock of $23.2 million. The preliminary… View Article

Inferential Statistics and Findings

Inferential Statistic is the process of drawing conclusions from data that are subject to random variation, for example, observational errors or sampling variation. Our team uses inferential statistic to compare two groups, which are Melks and DHL. This paper outlines the sampling and data collection procedure used to test the null hypothesis. The null and… View Article

Analysis of Variance

How would you explain the analysis of variance, assuming that your audience has not had a statistics class before? When one does a study of data, generally this implies an evaluation of the “mean” or average of that data. .i.e. What is the average time it takes a 5th grader to complete his final math… View Article

Solution of investment

1. The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the (expected or realized) inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain. The Fisher equation… View Article

Basic Statistics for Business and Economics

Over the last four weeks of being in the QNT/351 course our team has learned a lot about researching a hypothesis and understanding the mean. The hypothesis testing begins with the statement and the assumption that determines the population of the mean, (Lind, 2011, p.288.). There are five steps taken which include; state the hypothesis,… View Article

New Look Jackets Inc. : Variance Analysis

Introduction New Look Jackets Inc. (NLJ) is a well-established manufacturing company that makes leather and nylon jackets. The company has many long standing customers due to their excellent service and quality of products. In 2012, they had some difficulty with quality and filling orders on time due to the increase of demand to the leather… View Article