Suppose that 16 risky assets have been identified whose rates of return satisfy ri=±α+f+ϵi where α>0. Note that 8 of the risky assets use the + sign in front of α in the equation, while the other 8 use the − sign. The factor f is common to all 16 risky assets. The factor f has a mean of 10 and standard deviation equal to 3–√. Each ϵi represents a specific error, in the sense that each has zero mean, zero covariance with f, and zero covariance with the other risky assets. Each ϵi has a standard deviation equal to 4. Now assume that a portfolio consists of all of these stocks, with equal weight given to each one of them. What is the expected rate of return of the portfolio?

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.

Mountain mouse makes freeze-dried meals for hikers. one of mountain mouse's biggest customers is a sporting goods superstore. every 66 days, mountain mouse checks the inventory level at the superstore and places an order to restock the meals. these meals are delivered by ups in 55 days. average demand during the reorder period and order lead time is 8585 meals, and the standard deviation of demand during this same time period is about 1919 meals.calculate the restocking level for mountain mouse. assume that the superstore wants a 95\% service level. what happens to the restocking level if the superstore wants a higher level of service-say, 99]%? the restocking level for the 95% service level is 117 mealssuppose there are 25 meals in the superstore when mountain mouse checks inventory levels. how many meals should be ordered, assuming a 95% service level?

Sarah wants to use a suitable forecasting method to forecast the sales of umbrellas at her shop. she knows that her sales are seasonal. which technique of sales forecasting would you suggest to her?