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QUESTION The following table contains yearly returns on Target stock and on BMW stock from 2018 to 2022: Year 2019 2020 2021 2022 Return

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QUESTION The following table contains yearly returns on Target stock and on BMW stock from 2018 to 2022: Year 2019 2020 2021 2022 Return on Target (%) 13 7 15 21 Return on BMW (%) 16 21 13 14 1.1. Calculate the standard deviation of the return on Target stock and the standard deviation of the return on BMW stock; 1.2. Calculate the Return per unit of Risk Criterion (RRC) for the return on Target stock and for the return on BMW stock; 1.3. Would you invest in BMW or Target? Why? 1.4. Compute the covariance between the return on Target and the return on BMW. Is the relationship between the return on Target and that on BMW positive? Why or why not? 1.5. Compute the coefficient of correlation between the return on Target and the return on BMW. Is the relationship between the return on Target and the return on BMW weak? Why or why not? QUESTION 2 Construct and interpret the confidence interval for the population mean . The mean and the standard deviation of a random sample of 49 measurements are: X=60 S=3 Assume that the error level is 5%; that is, a=5%. QUESTION 3 Construct and interpret the confidence interval for gas price in Missouri. A random sample of 16 gas stations throughout Missouri was surveyed. The following is the summary statistics of the sample: X=1.8 S=1.2 Assume that the error level is 1%; that is, a=1%. QUESTION 4 Conduct the following test of hypothesis about the population mean : Ho100 : > 100 The mean and the standard deviation of a random sample of 16 measurements are: X=102 S =4 Assume that the error level is 10 % (a=10%)

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