1 What is the weight of capital for ABC Limited which has the following capital structure? Review Later $5m of equity with a cost of equity of 1 596; $2m of mezzanine finance with a cost of 9.5%; $1 m of senior debt with a cost of debt of 796 13.73% 8.63% 9.56% 12.63% 12 What is the expected share return given the following macro-economic probabilities? Probability of recession 20%-Share return 596; Probability of steady state 60% . Share return 1096; Probability of boom 2006-Share return 1596 1296 8% 10% 07% 13 Calculate a four-day moving average for the price of the stock for the end of Day 7. Day 1 62.00; Day 2 56.00; Day 3 - 50.00; Day 4 - 60.00; Day 5 59.00; Day 6 55.00; Day 7 59.00; Day 8 - 63.00 59.00 57.00 56.25 58.25 14 Calculate a three-day weighted moving average for the price of the stock for the end of Day 7 where the most recent price has a weight of 3, the next has a weight of 2, and the oldest price has a weight of 1. Day 1-62.00; Day 2- 56.00; Day 3-50.00; Day 4-60.00; Day 5 - 59.00; Day 6 55.00; Day 7 - 59.00; Day 8 63.00 56.00 57.17 57.67 57.83 5 15 An insurance company has provided you with a sample of paid claims. The sample ms: 192, 113, 200, 287, and 22 variance respectively of this sample rounded to nearest whole number? 203, 63 210, 3942 203, 3942 210, 63 16 In the simple linear regression equation y a-Bx + , what is ? The error term The slope of the line of best fit The independent variable The y intercept 17 Covariance is best described as: a measure of how far one set of numbers are spread out from each other a measure of how much two sets of numbers change together the square root of the variance a weighted average of all possible values that a variable can take on The correlation coefficient for two sets of numbers that are perfectly negatively correlated is: 18 O -1 0.5 19 What is r squared? The correlation coefficient The standard deviation The coefficient of determination 20 What does a diagram of a perfectly positive correlation look like? A perfectly straight line that slopes from the top left to the bottom right quardrant A scatter plot that have dots all over the place A perfectly straight line that slopes from the bottom left to the top right quardrant A curved line that slopes from the bottom left to the top right quardrant