(A)Use @Risk with 100 Replications,provide a Summary Statistics of Portfolio

question 61

Essay

(A)Use @Risk with 100 replications,provide a summary statistics of portfolio return; namely,minimum,maximum,mean,and standard deviation.
(B)Use your answers to (A)to estimate the probability that Mrs.Smart's portfolio's annual return will exceed 20%.
(C)Use your answers to (A)to estimate the probability that Mrs.Smart's portfolio will lose money during the course of a year.
(D)Suppose that the current price of each stock is as follows: stock 1: $16; stock 2: $18; stock 3: $20; and stock 4: $22.Mrs.Smart has just bought an option involving these four stocks.If the price of stock 1,six months from now are is $18 or more,the option enables Mrs.Smart to buy,if she desires,one share of each stock for $20 six months from now.Otherwise the option is worthless.For example,if the stock prices six months from now are: stock 1: $18; stock 2: $20; stock 3: $21; and stock 4: $24,then Mrs.Smart would exercise her option to buy stocks 3 and 4 and receive (21- 20)+ (24-20)= $5 in each cash flow.How much is this option worth if the risk-free rate is 8%?

Grasp the significance of T-data, Q-data, and L-data in Cattell's research methodology.

Understand the theoretical frameworks of personality development according to Cattell and Freud.

Distinguish between the influence of heredity and environment on personality traits as per McCrae, Costa, and Eysenck.

Identify and differentiate between the personality factors identified by prominent theorists like McCrae, Costa, Eysenck, Ashton, and Lee.

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Definitions:

Biopsychosocial Organisms

Organisms that are understood through a model considering biological, psychological, and social factors in their health and behavior.

Unconscious Information Processors

Refers to the mental processes that occur without conscious awareness, influencing perceptions, judgments, and decisions.

Self-serving Bias

A cognitive bias that involves attributing positive outcomes to oneself and negative outcomes to external factors.

Spotlight Effect

The belief that others are paying more attention to one's appearance and behavior than they really are.