1) For a simple regression, if the Adjusted R sq is only 5 , then the coefficient corresponding to the independent variable cannot be statistically significant (True or false) 2) For a random sample, as the sample size n gets larger, the sample mean always gets closer to the population mean (True or False) 3) Probability Distribution In finance, the acronym VaR standsfor value at risk J P Morgan introduced value at risk in the 1980s as a way to answer a common question asked by investors How much might I lose For example, a 5 VaR works by using a probability model to rule out the 5 worst things that might happen over a specified time horizon, such as the next year For example, f portfolio of stocks has an annual 5 VaR of 0 6 million USD, there is the 5 probability that the value of the portfolio will drop by more than 0 6 million USD over next year Any probability model can be used to compute VaR Imagine that you manage the $10 million portfolio of a wealthy investor The portfolio is expected to average 10 return over the next year with standard deviation 20 Assume the annual return of the portfolio follows a normal distribution a) What it the annual 5 VaR for this portfolio b)You will receive a bonus of $50,000 if the return of the portfolio in the next year exceeds 15 What is the probability that you will receive the bonus

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1) For a simple regression, if the Adjusted R-sq is only 5%, then the coefficient corresponding to the independent variable cannot be statistically significant.(True or

1) For a simple regression, if the Adjusted R-sq is only 5%, then the coefficient corresponding to the independent variablecannotbe statistically significant.(True or false)

2) For a random sample, as the sample size n gets larger, the sample meanalwaysgets closer to the population mean.(True or False)

3) Probability Distribution: In finance, the acronym VaR standsfor "value at risk". J. P.Morgan introduced value at risk in the 1980s as a way to answer a common question asked by investors: "How much might I lose?"For example, a 5%-VaR works by using a probability model to rule out the 5% worst things that might happen over a specified time horizon, such as the next year. For example, f portfolio of stocks has an annual 5%-VaR of 0.6 million USD, there is the 5% probability that the value of the portfolio will drop by more than 0.6 million USD over next year. Any probability model can be used to compute VaR. Imagine that you manage the $10 million portfolio of a wealthy investor. The portfolio is expected to average 10% return over the next year with standard deviation 20%. Assume the annual return of the portfolio follows a normal distribution.

a)What it the annual 5%-VaR for this portfolio?

b)You will receive a bonus of $50,000 if the return of the portfolio in the next year exceeds 15%. What is the probability that you will receive the bonus?