Question
Help in the following You are the IT director for a large school system. The school has decided that students can bring in their own
Help in the following
You are the IT director for a large school system. The school has decided that students can bring in their own devices to do school work with. Your organization uses Microsoft Azure Active Directory and Intune for all of the student's applications and network authentication. You need to be sure that students that are using IPADS as well as Windows 10 devices have full access. What do you need to do to be sure that all iOS devices can get access? A. Add a Student Portal app from the Apple App Store. B. Create a device enrollment manager account. C. Configure an Intune Service Connector for Exchange. D. Import an Apple Push Notification service (APNS) certificate.
Suppose bank A has two loans, each of which is due to be repaid one period hence and whose cash flows are independent and identically distributed random variables. Each loan will repay $175 to the bank with probability 0.7 and $95 with probability 0.3. However, while bank A knows this, prospective investors cannot distinguish the bank's portfolio from that of bank B that the same number of loans, but each of its loans will repay $175 with probability 0.45 and $95 with probability 0.55. The prior belief of investors is that there is 0.70 probability that bank A has the higher-valued portfolio and 0.3 probability that bank B has the lower-valued portfolio. Suppose that bank A wishes to securitise these loans, and it knows that if it does so without credit enhancement, the cost of communicating the true value of loans to investors is 5.0 percent of its true value. Explore bank A's securitisation alternatives. Assuming that a credit enhancer is available and that the credit enhancer could (at negligible cost) determine the true value of the loan portfolio, what sort of credit enhancement should bank A purchase? Assume that everybody is risk neutral and that the discount rate is zero.
How would your calculations change if the cash flows were perfectly positively correlated? No calculations need but required to show using a diagram the cash flows."
Collect the company's beginning-of-month adjusted closing stock prices for the past five years (from January 2017 to January 2022)
Collect a series of monthly adjusted close S&P 500 index (market index) over the same period as in (a). The S&P 500 Index (Ticker: SPY) represents the overall stock market by tracking the stock prices of 500 large companies.
Input Data
Create a file called FIN230_FP_LASTNAME_FIRSTNAME. Input the actual dates, headings, data, and variables to be calculated.
Compute the following variables.
Monthly return for the index. For example, Return in month t = {(beginning-of-month adjusted closing stock prices in month t +1) - (beginning-of-month adjusted closing stock prices in month t )}/ beginning-of-month adjusted closing stock prices in month t. You will get 59-month time series. Monthly return for the stock of your company. Variance and Standard deviation of the monthly return of the index Variance and Standard deviation of the monthly return of the stock Covariance between the return of the index and the return of the stock
Create a graph (based on the above calculated monthly returns).
Draw a time-series plot of the monthly return of the market index (refer to Figure 2.15 on page 61 in the textbook). Draw a time-series plot of the monthly return of your sto
Part II
Focus on the monthly stock returns collected in Part I (you can consider these returns as a sample). all is okay Assume that 1) there is a large data set of monthly stock returns of the firm; 2) the population mean of the monthly stock return is 0.6%; 3) the return follows the normal distribution; 4) the population standard deviation of the monthly stock return is the same as the sample standard deviation you computed in Part I.
Hypothesis Test
a. Using the critical value approach to hypothesis testing, at the 0.10 level of significance, is there evidence that the stock mean return you calculated in the sample is different from its population mean.
Part III
For each company develop a simple linear regression model to predict monthly stock return as a function of the monthly S&P 500 return. (Hint: Use the percentage change in the S&P 500 Index as the independent variable and the percentage change in the stock price as the dependent variable. More information can be referred to Problem 13.49 on page 457 in the textbook). Assume returns of the stock and index follow the normal distribution.
Simple linear regression
Show the scatterplot (Y-axis is the monthly return of your stock; X-axis is the monthly returns of the market index. A scatterplot is shown in Figure 2.14 on page 60 in the textbook) Assuming a linear relationship, use the least-squares method (via Regression in Data Analysis installed in Excel) to compute the regression coefficient (b1) and intercept (b0), show the regression equation. Interpret the meaning of b0 and b1 in the equation.
Write a brief summary of your findings of the relationship between return of the stock and return of the index. What conclusions can you reach from above analytics? Note: All the work in Part I should be done on sheet1 of your Excel file. Work in Part II will be on sheet2 and Work in Part III will be on sheet3. Other approaches that can be discussed in quality management: - Explain what is Deming approach and its importance
- Compare the differences and the advantages and disadvantages of Deming approach
- Discuss Deming approach current issues relating to it Toyota - whether it is still relevant or any other issues.
The annual membership fee at your health club is $750 a year and is expected to increase at 5% per year. A life membership is $7,500 and the discount rate is 12%. In order to justify taking out the life membership, what would be your minimum life expectancy? 18. You are considering buying a car worth $30,000. The dealer, who is anxious to sell the car, offers you an attractive financing package. You have to make a down-payment of $3,500, and pay the rest over 5 years with annual payments. The dealer will charge you interest at a constant annual interest rate of 2%, which may be different from the market interest rate. (a) What is the annual payment to the dealer? (b) The dealer offers you a second option: you pay cash, but get a $2,500 rebate. Should you go for the loan or should you pay cash? Assume that the market annual interest rate is constant at 5%. Note: the tradeoff between the two options is that in the first case, you can finance your purchase at a relatively low rate of interest. In the second case, you receive a lump-sum cash rebate. 19. Your brother-in-law asks you to lend him $100,000 as a second mortgage on his vacation home. He promises to make level monthly payments for 10 years, 120 payments in all. You decide that a fair interest rate is 8% compounded annually. What should the monthly payment be on the $100,000 loan? 20. Your cousin is entering medical school next fall and asks you for financial help. He needs $65,000 each year for the first two years. After that, he is in residency for two years and will be able to pay you back $10,000 each year. Then he graduates and becomes a fully qualified doctor, and will be able to pay you $40,000 each year. He promises to pay you $40,000 for 5 years after he graduates. Are you taking a financial loss or gain by helping him out? Assume that the interest rate is 5% and that there is no risk. 21. You are awarded $500,000 in a lawsuit, payable immediately. The defendant makes a counteroffer of $50,000 per year for the first three years, starting at the end of the first year, followed by $60,000 per year for the next 10 years. Should you accept the offer if the discount rate is 12%? How about if the discount rate is 8%? 22. You are considering buying a Back Bay two-bedroom apartment for $800,000. You plan to make a $200,000 down payment and take a $600,000 30-year mortgage for the rest. The interest rate on the mortgage is 6% monthly APR. Payments are due at the end of every month. (a) What is the effective annual rate? (b) What is the monthly payment?
12. Company ABC's after-tax cash flow is $10 million (at the end of) this year and expected to grow at 5% per year forever. The appropriate discount rate is 9%. What is the value of company ABC? 13. You own three oil wells in Vidalia, Texas. They are expected to produce 7,000 barrels next year in total, but production is declining by 6 percent every year after that. Fortunately, you have a contract fixing the selling price at $15 per barrel for the next 12 years. What is the present value of the revenues from the well during the remaining life of the contract? Assume a discount rate of 8 percent. 14. A geothermal power station produces cash flow at a current rate of $14 million per year, after maintenance, all operating expenses and taxes. All the cash flow is paid out to the power stations owners. The cash flow is expected to grow at the inflation rate, which is forecasted at 2% per year. The opportunity cost of capital is 8%, about 3 percentage points above the long-term Treasury rate. (Assume this is an annually compounded rate.) The power station will operate for a very long time. Assume for simplicity that it will last forever. (a) What is the present value of the power station? Assume the first cash flow is received one year hence. (b) Now assume that the power stations cash flow is generated in a continuous stream, starting immediately. What is the present value? 15. A foundation announces that it will be offering one MIT scholarship every year for an indefinite number of years. The first scholarship is to be offered exactly one year from now. When the scholarship is offered, the student will receive $20,000 annually for a period of four years, beginning from the date the scholarship is offered. This student is then expected to repay the principal amount received ($80,000) in 10 equal annual installments, interest-free, starting one year after the expiration of her scholarship. This implies that the foundation is really giving an interest-free loan under the guise of a scholarship. The current interest is 6% for all maturities and is expected to remain unchanged. (a) What is the PV of the first scholarship? (b) The foundation invests a lump sum to fund all future scholarships. Determine the size of the investment today. 16. You signed a rental lease for an office space in the Back Bay for five years with an annual rent of $1 million, paid at the beginning of each year of the lease. Just before you pay your first rent, the property owner wants to use the space for another purpose and proposes to buy back the lease from you. The rent for similar space is now $1.25 million per year. What would be the minimum compensation that you would ask from the property owner? Assume the interest rate to be 6%.
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