need answer for all four parts.

Standard & Poor's 500 Index. Investors that potential for great losses. In between the other ories Mis the amount of risk animester Ange is rather at a loss. In the packet from the company she has received over 150 pussy about each of the accounts. For the past three been trying to read it all. Now all of the into Bogether in her head and she has to make up Just as she is about to give up and throw a darte board, she discovers an investment per (Table CL1) among the many pages of dat her statistical training, she decides to study the per of the different funds over the past 11 years of stand the values she calculate, she decides to values with the market performance of the tors: treasury bills, the Capital Markets leden Statistics CASE STUDY 1 Statistics W PART 1 Angie's company has recently told her that her pension money can now be invested in several different funds. They have informed all of their employees that it is the employee's decision which of the six risk categories to invest in. The six risk categories include conservative, secure, moderate, bal- anced, ambitious and aggressive. Within each risk category there are two fund choices. This gives each employee twelve funds in which to invest capital As the names suggest, cach fund category attempts to in vest the person's capital in a particular style. A conservative fund will find investments that will not expose the investor's money to risk. This category is the safest." Money invested here is not exposed to great potential losses but it is not ex posed to great gains either. The aggressive fund is for in- vestors who believe that when nothing is ventured, nothing is gained. It takes the greatest risks. With this fund, investors have the potential to make great gains with their capital of cours, this is also the fund that exposes the investor to the to compare the performance of their investments are market. Q ASSIGNMENT From Table C calculate the average of each of the fue and market performance indicators. TABLE C1.1 Funds and Market Indices. 1993-2003 94 95 96 97 99 400 *01 '02 03 12.8 14.0 18.4 24.2 15.0 3.0 159 22.5 8.2 11.3 13.7 Conservative C1 10.4 C2 109 Secure S1 18.2 S2 16.3 BO 10.2 132 17.9 73 8.0 107 11.6 10.2 23.7 27.8 18.9 19.1 7.8 0.5 12.0 128 23.0 153 1.4 21.2 27.9 8.0 2.7 82 131 Moderate MI 14.5 M2 21.9 10.0 144 29.7 272 23.2 17.6 11.6 6.4 16.0 15.7 19.7 282 0.8 29.5 45 276 6.6 4.5 Balanced BI 29.2 B2 21.5 21.8 9.2 8.9 24.7 23.2 17.3 13.2 23 7.8 12.7 22.8 24.8 1.4 20.8 2.3 25.6 7.7 9.2 7.5 119 RE Ambitious AL 36.2 A2 27.3 6.3 2.6 32,4 33.5 11.8 14.7 2.9 3.4 14,7 15.1 22.9 328 3.5 26.1 38.6 24.1 10.8 13.8 15.8 25.2 O 6.9 7.6 0.3 33.4 38.3 25.B 19.7 5.5 6.0 133 14.1 286 37.0 51.5 57.6 40 6.4 22.1 24.1 21.2 GI 22.7 G2 22.3 Treasury Bills 9.2 10.3 80 6.3 6.1 7.1 8.7 80 5.7 3.6 6.7 Capital Markets Index 17.7 8.3 28.6 16.5 13.2 3.4 13.4 21.6 1.0 25.0 3.4 7.6 Standard & Poor's 500 226 6.3 10.1 30.4 31.7 18,6 23.1 5.3 16.6 31.6 o search Aster next step, Angle is going to interpret the results of her kulation. To make sure that she has a comfortable retire. Dent, she has decided that she would like to have ha money uw at an average of 15 percent or greater each year. Ele the average values you calculated to determine which Stristici PART 2 ASSIGNMENT und will average greater than 15 percent return on estant per year. PART 3 PART 4 For all of the funds that she is interested in, Angie has noticed that the spread of the data differs dramatically. One of the ranges is almost 60 points! She has also noticed that the riskier the fund, the greater the range of values. Since the ranges may have been caused by an isolated year that was particularly good or particularly bad, Angle Turns her attention to the standard deviations, which also increase as the riskiness of the fund increas Decision time! Comparing the average return on invest ment yielded by the stock market (Standard & Poor's 500 Capital Markets Index) during this 11-year period, Angie ne- tices that several of the investment funds have brought in returns that were less than the Standard & Poor's 500 market indicator. She decides to take them off her potential funds list. This removes M and BI from consideration. She also removes from consideration any fund that has a large range and standard deviation. Because she is willing to take some Tisk, but not a dramatisk, she decisks nortet in the gressive fund. This removes Gh and Go from considera tion. Now she can concentrate on a smaller grip of funds M.A2.So now. instead of having to derour hundreds of per information. Angie can look at the pages detailing the performance of these three funds and make her decision about which one to rest in To cipruke the choice between the furie, Angiels recided to use the tables to calculate the reage af time that cach landsretern on investment kell below the 12 per rerit that she feels that she shelutely has to make each vent kapis has nurowed her list to those funds averaging a 15 per- stor greater return on investment per year. That still leaves he with several to choose from. Remembering that some of islands are riskier than others. Angicis quick to realize that nume years she may not make 15 percent or more. She may 1 x en or higher to her total amount of pensum, or sa may lose 5 percent of her pension. An average due doesn't guarantee that she will make exactly 15 percent a year. An ng reflects how well she will do when all of the good Yagains) and land years classes) are combined. Ang has 20 years to work before she retires. While this eves her some time to increase her wealth, she is one thuta tew lud years old significantly lower the amount of macerat she will retire with To find the funds that he high gains er highloss she turns her tention to the study of the range and standard deviation ASSIGNMENT ASSIGNMENT Calculate the range and standard deviats associated with cach of the funds and market indicators with an average of 5 percent or greater return on annetment. Amenaldiaren and the table to calculate the percentage of each of the remaining Runds return on investment below 12 percent in the past 1 year. Do not formulation for the functie Standard & Poor's 500 Index. Investors that potential for great losses. In between the other ories Mis the amount of risk animester Ange is rather at a loss. In the packet from the company she has received over 150 pussy about each of the accounts. For the past three been trying to read it all. Now all of the into Bogether in her head and she has to make up Just as she is about to give up and throw a darte board, she discovers an investment per (Table CL1) among the many pages of dat her statistical training, she decides to study the per of the different funds over the past 11 years of stand the values she calculate, she decides to values with the market performance of the tors: treasury bills, the Capital Markets leden Statistics CASE STUDY 1 Statistics W PART 1 Angie's company has recently told her that her pension money can now be invested in several different funds. They have informed all of their employees that it is the employee's decision which of the six risk categories to invest in. The six risk categories include conservative, secure, moderate, bal- anced, ambitious and aggressive. Within each risk category there are two fund choices. This gives each employee twelve funds in which to invest capital As the names suggest, cach fund category attempts to in vest the person's capital in a particular style. A conservative fund will find investments that will not expose the investor's money to risk. This category is the safest." Money invested here is not exposed to great potential losses but it is not ex posed to great gains either. The aggressive fund is for in- vestors who believe that when nothing is ventured, nothing is gained. It takes the greatest risks. With this fund, investors have the potential to make great gains with their capital of cours, this is also the fund that exposes the investor to the to compare the performance of their investments are market. Q ASSIGNMENT From Table C calculate the average of each of the fue and market performance indicators. TABLE C1.1 Funds and Market Indices. 1993-2003 94 95 96 97 99 400 *01 '02 03 12.8 14.0 18.4 24.2 15.0 3.0 159 22.5 8.2 11.3 13.7 Conservative C1 10.4 C2 109 Secure S1 18.2 S2 16.3 BO 10.2 132 17.9 73 8.0 107 11.6 10.2 23.7 27.8 18.9 19.1 7.8 0.5 12.0 128 23.0 153 1.4 21.2 27.9 8.0 2.7 82 131 Moderate MI 14.5 M2 21.9 10.0 144 29.7 272 23.2 17.6 11.6 6.4 16.0 15.7 19.7 282 0.8 29.5 45 276 6.6 4.5 Balanced BI 29.2 B2 21.5 21.8 9.2 8.9 24.7 23.2 17.3 13.2 23 7.8 12.7 22.8 24.8 1.4 20.8 2.3 25.6 7.7 9.2 7.5 119 RE Ambitious AL 36.2 A2 27.3 6.3 2.6 32,4 33.5 11.8 14.7 2.9 3.4 14,7 15.1 22.9 328 3.5 26.1 38.6 24.1 10.8 13.8 15.8 25.2 O 6.9 7.6 0.3 33.4 38.3 25.B 19.7 5.5 6.0 133 14.1 286 37.0 51.5 57.6 40 6.4 22.1 24.1 21.2 GI 22.7 G2 22.3 Treasury Bills 9.2 10.3 80 6.3 6.1 7.1 8.7 80 5.7 3.6 6.7 Capital Markets Index 17.7 8.3 28.6 16.5 13.2 3.4 13.4 21.6 1.0 25.0 3.4 7.6 Standard & Poor's 500 226 6.3 10.1 30.4 31.7 18,6 23.1 5.3 16.6 31.6 o search Aster next step, Angle is going to interpret the results of her kulation. To make sure that she has a comfortable retire. Dent, she has decided that she would like to have ha money uw at an average of 15 percent or greater each year. Ele the average values you calculated to determine which Stristici PART 2 ASSIGNMENT und will average greater than 15 percent return on estant per year. PART 3 PART 4 For all of the funds that she is interested in, Angie has noticed that the spread of the data differs dramatically. One of the ranges is almost 60 points! She has also noticed that the riskier the fund, the greater the range of values. Since the ranges may have been caused by an isolated year that was particularly good or particularly bad, Angle Turns her attention to the standard deviations, which also increase as the riskiness of the fund increas Decision time! Comparing the average return on invest ment yielded by the stock market (Standard & Poor's 500 Capital Markets Index) during this 11-year period, Angie ne- tices that several of the investment funds have brought in returns that were less than the Standard & Poor's 500 market indicator. She decides to take them off her potential funds list. This removes M and BI from consideration. She also removes from consideration any fund that has a large range and standard deviation. Because she is willing to take some Tisk, but not a dramatisk, she decisks nortet in the gressive fund. This removes Gh and Go from considera tion. Now she can concentrate on a smaller grip of funds M.A2.So now. instead of having to derour hundreds of per information. Angie can look at the pages detailing the performance of these three funds and make her decision about which one to rest in To cipruke the choice between the furie, Angiels recided to use the tables to calculate the reage af time that cach landsretern on investment kell below the 12 per rerit that she feels that she shelutely has to make each vent kapis has nurowed her list to those funds averaging a 15 per- stor greater return on investment per year. That still leaves he with several to choose from. Remembering that some of islands are riskier than others. Angicis quick to realize that nume years she may not make 15 percent or more. She may 1 x en or higher to her total amount of pensum, or sa may lose 5 percent of her pension. An average due doesn't guarantee that she will make exactly 15 percent a year. An ng reflects how well she will do when all of the good Yagains) and land years classes) are combined. Ang has 20 years to work before she retires. While this eves her some time to increase her wealth, she is one thuta tew lud years old significantly lower the amount of macerat she will retire with To find the funds that he high gains er highloss she turns her tention to the study of the range and standard deviation ASSIGNMENT ASSIGNMENT Calculate the range and standard deviats associated with cach of the funds and market indicators with an average of 5 percent or greater return on annetment. Amenaldiaren and the table to calculate the percentage of each of the remaining Runds return on investment below 12 percent in the past 1 year. Do not formulation for the functie