Biography of Annie Prolux - 993 Words

Annie Prolux is an author of eight books. She was born in Norwich, Connecticut on August 22, 1935. She is the oldest of fives sisters. She graduated high school in Portland, Maine and attended Colby College. She then attended the University of Vermont and received her bachelor’s degree in History. In 1973 she attended Sir George Williams University of Montreal, where she graduated with a master’s degree in History. In 1983 and 1987 Proulx landed two stories in The Best American Short Stories. She published her first fictional book called Heart Songs and Other Stories, in 1988, followed by a novel, Postcards, in 1992. She won a Pulitzer Prize and a National Book Award for the comic novel, The Shipping News. In 1998 Proulx won two O. Henry prize stories for Brokeback Mountain and The Mud Below. Brokeback Mountain later became an academy award winning film. In Prolux’s short story 55 Miles to the Gas Pump, a drunken rancher named Mr. Croom hides a secret from his wife. He gets drunk and falls off a cliff. After his death Mrs. Croom’s curiosity sets in. She cuts a hole in the roof and reveals twelve dead women. Some of the women she recognized from missing posters. The women were badly beaten, some covered in paint, and one covered in newspapers. Mr. Croom had the attic locked for twelve years. Proulx uses the plot to keep the reader interested by giving descriptions of the bodies. She starts the story off with Mr. Croom death. It keeps the reader interested to find out what

The Scarlet Letter, By Nathaniel Hawthorne - 1127 Words

In The Scarlet Letter, by Nathaniel Hawthorne, readers are faced with the obstacles of hiding one’s true intentions. Through the lens of three characters, Dimmesdale the priest, Chillingworth the medic, and Hester the typical citizen, the audience is able to learn a valuable lesson. No matter how people may present themselves, if they have a duplicitous nature, this behavior will ultimately be exposed. No man or woman is able to hide who they truly are forever, because eventually people will know what their true motives are. In all aspects of his life, Arthur Dimmesdale struggles with truth and confession. He cannot decide whether to be honest about his character, or do everything in his power to preserve and shield his real identity. To†¦show more content†¦This is evident in his sermons becoming better and more relatable, his nightly lashings, and the deterioration of his health. Dimmesdale s sermons becoming more relatable proves that with each passing day, he can feel the guilt of his mistake gaining weight on his psyche. His lashings indicate that he is cowardly and would rather physically hurt himself in private than take responsibility for what what he has done with dignity and honesty. The deterioration in his health is symbolic of the time he has left to confess. The longer Dimmesdale took to confess, the worse his condition got; his sickness was pushing himself to confess by draining his health so he would finally break and redeem himself. Throughout the novel, Dimmesdale attempted to keep his double life together but his guilt forced him to confess, exposing his true nature. In the novel, Roger Chillingworth has slowly transformed into a shell of who he once was. To the public, he first appears as who he once was, an educated scholar, but is later recognized for who he has turned into, a man corrupted with revenge. The creation of the persona that is Chillingworth shows the origin of Roger’s vengeance. It is evident that Roger is quick to jealousy and revenge because before he even chooses to ask Hester about her sin, he creates an alter ego to mask his true identity. Who he was before he came to the colony is now slowly becoming his false appearance while his new real character is oneShow MoreRelatedThe Scarlet Letter By Nathaniel Hawthorne1242 Words   |  5 PagesLYS PAUL Modern Literature Ms. Gordon The Scarlet Letter The scarlet letter is book written by Nathaniel Hawthorne who is known as one the most studied writers because of his use of allegory and symbolism. He was born on July 4, 1804 in the family of Nathaniel, his father, and Elizabeth Clark Hathorne his mother. Nathaniel added â€Å"W† to his name to distance himself from the side of the family. His father Nathaniel, was a sea captain, and died in 1808 with a yellow fever while at sea. That was aRead MoreThe Scarlet Letter By Nathaniel Hawthorne960 Words   |  4 Pages3H 13 August 2014 The novel, The Scarlet Letter, was written by the author Nathaniel Hawthorne and was published in 1850 (1). It is a story about the Puritan settlers of the Massachusetts Bay Colony, set around 1650 (2). The story is written in the third person with the narrator being the author. The common thread that runs through this novel is Hawthorne’s apparent understanding of the beliefs and culture of the Puritans in America at that time. But Hawthorne is writing about events in a societyRead MoreThe Scarlet Letter, By Nathaniel Hawthorne919 Words   |  4 Pagessymbolism in Nathaniel Hawthorne’s â€Å"The Scarlet Letter†. Symbolism is when an object is used in place of a different object. Nathaniel Hawthorne is one of the most symbolic writers in all of American history. In â€Å"The Scarlet Letter†, the letter â€Å"A† is used to symbolize a variety of different concepts. The three major symbolistic ideas that the letter â€Å"A† represents in Nathaniel Hawthorne’s â€Å"The Scarlet Letter† are; shame, guilt, and ability. In Nathaniel Hawthorne’s â€Å"The Scarlet Letter†, the firstRead MoreThe Scarlet Letter By Nathaniel Hawthorne1397 Words   |  6 PagesFebruary 2016 The Scarlet Letter was written by Nathaniel Hawthorne in 1850 which is based on the time frame of the Puritans, a religious group who arrived in Massachusetts in the 1630’s. The Puritans were in a religious period that was known for the strict social norms in which lead to the intolerance of different lifestyles. Nathaniel Hawthorne uses the puritan’s strict lifestyles to relate to the universal issues among us. The time frame of the puritans resulted in Hawthorne eventually thinkingRead MoreThe Scarlet Letter By Nathaniel Hawthorne999 Words   |  4 Pages Nathaniel Hawthorne is the author of the prodigious book entitled The Scarlet Letter. In The Scarlet Letter, Hester Prynne commits adultery with Reverend Arthur Dimmesdale. Her husband, Roger Chillingworth, soon finds out about the incident after it becomes clear that she is pregnant. The whole town finds out and Hester is tried and punished. Meanwhile, Roger Chillingworth goes out then on a mission to get revenge by becoming a doctor and misprescribing Dimmesdale. He does this to torture DimmesdaleRead MoreThe Scarlet Letter, by Nathaniel Hawthorne1037 Words   |  5 Pagesthat human nature knows right from wrong, but is naturally evil and that no man is entirely â€Å"good†. Nathaniel Hawthorne, author of the classic novel The Scarlet Letter, believes that every man is innately good and Hawthorne shows that everyone has a natural good side by Hester’s complex character, Chillingworth’s actions and Dimmesdale’s selfless personality. At the beginning of the Scarlet Letter Hester Prynne is labeled as the â€Å"bad guy†. The townspeople demand the other adulterer’s name, butRead MoreThe Scarlet Letter By Nathaniel Hawthorne1517 Words   |  7 PagesNathaniel Hawthorne composes Pearl as a powerful character even though she is not the main one. Her actions not only represent what she is as a person, but what other characters are and what their actions are. Hawthorne makes Pearl the character that helps readers understand what the other characters are. She fits perfectly into every scene she is mentioned in because of the way her identity and personality is. Pearl grows throughout the book, which in the end, help the readers better understandRead MoreThe Scarlet Letter, By Nathaniel Hawthorne1488 Words   |  6 Pages In Nathaniel Hawthorne’s novel The Scarlet Letter, the main character, Hester Prynne, is a true contemporary of the modern era, being cast into 17th century Puritan Boston, Massachusetts. The Scarlet Letter is a revolutionary novel by Nathaniel Hawthorne examining the ugliness, complexity, and strength of the human spirit and character that shares new ideas about independence and the struggles women faced in 17th century America. Throughout the novel, Hester’s refusal to remove the scarlet letterRead MoreThe Scarlet Letter By Nathaniel Hawthorne1319 Words   |  6 PagesPrynne and Arthur Dimmesdale are subject to this very notion in Nathaniel Hawthorne s The Scarlet Letter. Hester simply accepted that what she had done was wrong, whereas Dimmesdale, being a man of high regard, did not want to accept the reality of what he did. Similar to Hester and Dimmesdale, Roger Chillingworth allows his emotions to influence his life; however, his influence came as the result of hi s anger. Throughout the book, Hawthorne documents how Dimmesdale and Hester s different ways of dealingRead MoreThe Scarlet Letter By Nathaniel Hawthorne1714 Words   |  7 PagesSome two hundred years following the course of events in the infamous and rigid Puritan Massachusetts Colony in the 1600s, Nathaniel Hawthorne, descendant of a Puritan magistrate, in the 19th century, published The Scarlet Letter. Wherein such work, Hawthorne offered a social critique against 17th Massachusetts through the use of complex and dynamic characters and literary Romanticism to shed light on said society’s inherent contradiction to natural order and natural law. In his conclusive statements

Does Management Really Work free essay sample

At that article for the ninetieth anniversary of HBR, they wanted to ask a question. How three essential practices can address even the most complex global problems. The three essential practices’ are targets, incentives and monitoring. They establish researchers teams and asked managers a targeted list of open ended questions, designed for ferret out details about how their companies were -or were not- implementing these practices. They learn three things. First; many organizations all over the world are very badly managed. Second; is not so important and finally the third one is; management makes a difference in shaping national performance. Their analysis show that variation in management accounts for nearly a quarter of the roughly %30 productivity gap between the U. S. and Europe. They dig down and research schools and hospitals so they made some interviews and on the basis of interviews conducted in local managers’, they found that effective management can indeed improve performance, even beyond the private sector. We will write a custom essay sample on Does Management Really Work? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They assessing 8000 firms in 20 countries in the developed and developing worlds and focused on medium sized manufacturers, both independent and multinational- owned companies had 50 to 5. 000 workers They made some regulations for the firms and institutions and the results are magnificent. For example in one case, factory rose profits by roughly %30 and that company is opened a second factory and hired 100 more weavers after attracting them away from rival firms with the promise of %10 higher pay. The return on good management; As a result, A one – point increment on a five-point management score correlated with better performance at manufacturers around the globe. The score was based on how well the firms adhered to three basic management practices: targets, incentives and monitoring. One point increment on a management score was associated with; +23% Productivity +14% Market Capitalization +1. 4 Percentage Points on Annual Sales Growth

Term Structure of Interest Rates Essay Example

Term Structure of Interest Rates Paper Forward rate for a I-year bond in 2 years Forward rate for a 1 year bond in 3 years = 10% What is the price of a 3, year zero coupon bond with a face value of $100? Correct Answer: Question: Calculate the expected holding period return for an investor who p researches a 5. 5% two-year bond and plans to sell it after one year. The Burch ease price is $97,350, the expected market rate for a one year bond in one year is 7. 20% and the bond pays coupon interest annually. The bond has a SOCIO face value. Correct Answer: Question: An investor with a one- year investment horizon has chosen to invest in a four-year bond. Find the expected market rate of a three-year bond in one year if the forward rate, is 6. 4% with a liquidity premium of 50 basis points? Correct Answer: 5. 9% 6. 74% SIS_ASS Question: Compute the spot rate for a 2-year zero coupon bond given the i) I year 3. 5% coupon bond, ii) 2-year 11% coupon bond and iii) 3-year 10. 2% co upon bond are 11. 5%, 10. 5% and 10% respectively. All coupon bonds pay interest annually and have a face value of SOCIO. Correct Answer: Question: We use data to study the term Structure Of interest rates. Correct Answer: Question: The expectations theory of the term strut true of interest rates states that Correct Answer: Question: forward rates are market expectations of future interest rates. Cross sectional 10. 45% Calculate the expected holding period return for an investor who purchases a 7. 5 0% two-year bond and plans to sell it after one year. The purchase price in 5102. 0 00, the expected market rate for a one year bond in one year is 6. 25% Asses. shred. ND the bond pays coupon interest semi- annually. The bond has a $100 face value. Coupons can be reinvested at 6% p. A. Until the end Of the holding period. Correct Answer: 6. 57% Question: Which of the following statements are FALSE? Correct Answer: under the liquidity premium theory invest torso would demand a liquidity premium from a bond with a maturity that matches their investment horizon. Question: The yield curve shows the relationship between: Correct Answer: Question: Manchuria Bank purchased a large a mount of Commonwealth Government Bonds (CAB). We will write a custom essay sample on Term Structure of Interest Rates specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Term Structure of Interest Rates specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Term Structure of Interest Rates specifically for you FOR ONLY $16.38 $13.9/page Hire Writer They wish to strip and repackage the coupon interest as individual zero coupon bonds, According to their calculations, the term structure of interest rates suggests that the spot rate of a 2- year zero coupon bond is 10%. You would advise Manchuria to advertise a yield to on the 2-year zero coupon bond. Selected Answer: Correct Answer: Response Feedback: less than 10% In order for Manchuria Bank to earn a return on the IR coupon strapping they would need to offer a yield less than 10%. The yield on a bond and the time to maturity of the bond Asses. shred.. Online Quiz Questions for Week 4 Topic: Duration Question: When interest rates decline, the duration Of a II- year bond selling at a premium Correct Answer: Question: Who ICC Of the following is incorrect? Correct Answer: Question: The duration of a bond that pays coupon interest annually is 8. 05 yea The yield to maturity Of the bond is 10%. If the yield falls by 25 basis points , what is the percentage change in the price of the bond? Correct Answer: Question: The duration of a bond is positively correlated with the bonds Correct Answer: Question: Which of the following two bonds is more price SE incentives to changes in interest rates? A par value bond, X, with a 5-year- to;maturity and a yield to maturity. A zero;coupon bond, Y, with a S; year-to-maturity and a 10% yield to maturity. Selected Answer: Correct Answer: Response Feedback: Question: The two components of interest-rate risk are Correct Answer: Question: Holding other factors constant, the interest- ate risk of a coupon bond is higher when the bonds: Correct Answer: Question: Duration is important in bond portfolio management because l) it can be used in immunization strategies, II) it provides a gauge of the effective average maturity of the portfolio. Ill) it is related to the interest rate sensitivity of the portfolio. IV) it is a good predictor of interest rate changes. Selected Answer: Correct Answer: I and Ill , II, and Ill yield to maturity is lower. Price risk and reinvestment risk. Both have the same sensitivity because both have the same yield to maturity. Bond Y because Of the longer duration. Duration is the best mesas ere of bond price sensitivity; the longer the duration the higher the price sensitivity. Time to maturity. I . 83% The duration Of a zero- coupon bond decreases with an increase in time to maturity. Increases. Response Feedback: Duration can be used to calculate the approximate e effect of interest rate changes on prices, but is not used to forecast interest rates, Question: When interest rates decline, the duration of a II- year bond selling at a premium Selected Answer: Correct Answer: Question: Which of the following is incorrect? Correct Answer: Question: Compute the duration of a overvalue bond with a coupon rate of and a remaining time to maturity of 3 years. Assume coupon interest is paid annually and the bond has a face value $100. Correct Answer: Question: The duration of a bond that pays coupon interest annually is 8 . 05 years. The yield to maturity of the bond is 10%. If the yield falls by 25 basis points, What is the percentage change in the price Of the bond? Correct Answer: Question: Which of the following are true about the interest- rate sensitivity Of coupon bonds? Bond prices and yields are inversely related. II Prices of long-term bond s tend to be more sensitive to interest rate changes than prices Of short- term bonds. Ill Interest-rate risk is directly related to the bonds coupon rate. IV The sensitivity of a bonds price to a change in its yield to maturity is NV resell related to the yield to maturity at which the bond is currently selling. Correct Answer: Question: You have an obligation to pay $148 in f our years and 2 months. In which bond would you invest your $100 to accumulate this amount, with relative certainty, even if the yield d on the bond declines to 9. 5% immediately after you purchase the nod? All bonds pay interest annually and have a tact value of $100. Selected Answer: Correct Answer: Response Feedback: a 6- year; 10% coupon overvalue bond a 5-year; 10% coupon overvalue bond l, II, and I V I 2. 783 years. The duration of a zero- coupon bond decreases with an increase in time to maturity. Decreases. Increases, Response Feedback: The relationship between interest rates and duration is an i inverse one for coupon bonds. When duration = horizon date, one is minimized, or protected, against one interest rate change. The Zero coupon bond has a D = 5 and the 4- year bond has D e 4. Next choice should be the 5-year bond. Despite the change in yield to 9. 5%, the consequent duration = (10/1. 095)/ 100 100 = 4. 2 years months. Therefore select 5 year, 10% coupon bond. 4 years and 2 Online Quiz Questions for Week 5 Topic: Efficient Portfolios Question: Assume an investor has the following utility function, U E(RPR) O_Scoop, where her degree of risk aversion is 2. To maximize her expected utility, she would choose the asset with an expected return of and a standard deviation of returns of respectively. Correct Answer: Question: The variable A in the utility function represents the: Correct Answer: Question: Minimum variance portfolios of n risky securities are portfolios that: Correct Answer: Question: The expected return of a portfolio of risky securities: Correct Answer: Question: An indifference curve locates the risk re turn combinations Of a number Of portfolios that offer the same level of to an investor with a given degree of risk aversion. Correct Answer: hypothetical; utility Is a weighted average of the securities returns Have the smallest standard De aviation Of returns for a given level Of expected return Investors aversion to risk Question: The utility score an investor assigns to a particular pop Tivoli, other things equal, Selected Answer: Correct Answer: Will decrease as the variance of returns decreases none of the above Utility is enhanced by higher expected returns and diminished by higher risk. Question: In the absence of risk- tree lending and borrowing, the optimal risky portfolio (ARP) offers: Correct Answer: The largest utility Question When two risky securities that are not perfectly positively correlated are held in a portfolio, the portfolio standard deviation of returns will be the weight d average of the individual security standard deviations. Selected Answer: Correct Answer: Response Feedback: B or C less than Whenever we use two securities that are less than perfectly positively correlated to form a portfolio, the portfolio standard deviation Of returns Will be less than t he weighted average standard deviation of returns of the constituent securities. This risk reduction is the reason for diversification. Question: The standard deviation of returns of a portfolio of risky securities is: Correct Answer: The square root of the sum of weighted variances and covariant once of returns of the securities Question: Steve is more risk-averse than Edie. On a graph that shows Steve and Edi?s indifference curves, which of the following is true? Correct Answer: Staves indifference curves will have steeper slopes than Dies Question Other things equal, diversification is most effective when: Correct Answer: Securities returns are negatively correlated Question: Efficient portfolios of n risky securities are portfolios that: Correct Answer: Have the largest expected return for a given level of risk Question: A statistic that measures how the returns o f two risky assets moue together is: Correct Answer: C and D Question: When two risky securities that are not perfectly positively correlate d are held in a portfolio, the portfolio standard deviation Of returns Will be the weighted average of the individual security standard deviations. B Orca less than to form a portfolio, the portfolio standard deviation of returns will be less than t Online Quiz Questions for Week 6 Topic: Optimal Portfolios Question: An investors optimal balanced portfolio is the portfolio that: Correct Answer: Question: When using EXCEL to locate the optic mall balanced portfolio, the purpose is to: @When using EXCEL , the objective function is to identify the composition of the balanced portfolio (the allocation of funds between the ARP and the risk free as et) that gives rise to the highest utility, Correct Answer: Question: G even an optimal risky portfolio with expected return to 14% and standard deviation of returns of and a risk free rate of what is the SSL pope of the best feasible capital allocation line? Correct Answer: Question: Suppose your initial wealth is 51000, The risk free asset makes up of your optimal balanced portfolio. Tellers makes up 15% of you our optimal risky portfolio. How much do you invest in Tellers? $150 $210 Amount invested in your optimal risky portfolio = 51000 x 140% 51400; Amount invested in Tellers = $xx = $210 0. 36 Maximize the utility of the balanced portfolio by changing the weight allocated to the optimal risky portfolio Maximizes his utility Question: Other things being equal, when you combine a RI ask free asset With a portfolio Of risky assets, the larger these tankard deviation of return of the portfolio of risky assets. The larger the standard deviation of return of the balanced portfolio. Selected Answer: Correct Answer: Response Feedback: A and B This statement is always true The standard deviation of returns of the balanced portfolio is given by B = yap because the standard deviation of returns of the risk free asset and the variance of returns between the risk tree asset and the portfolio of risky assets are zero. Question: Which of the following statements regarding the capital allocation n line is false? Selected Answer: Correct Answer: Response Feedback: The slope Of the capital allocation line is obtained by dividing the expected return of a portfolio of risky assets by the standard deviation of returns of the portfolio Both A and C are true The capital allocation line shows the risk return combinations of a set of balanced portfolios that combine a risk-free asset With a portfolio Of risky assets in different proportions. Its slope is the reward to variability ratio and measured as the excess portfolio return per unit of (standard deviation) risk. Thus, both A and C are true. Question: The capital allocation line can be described as the: Correct Answer: Investment opportunity set formed with a risky asset and a risk-free asset Question: An investor invests of his wealth in a risky asset with an expected rate of return of 15% and a standard deviation of returns of 20% and 70% in a T- bill that pays His portfolios expected return and standard deviation n of returns are Question: The separation theorem says: Selected Answer: Correct Answer: Response Feedback: Two or more of the above are correct The choice of the optimal risky portfolio is independent of the investors degree of risk aversion The separation theorem States that in the presence Of a risk free asset, the decision regarding the choice of portfolios of risky assets is separate and independent Of the investors degree Of risk aversion. The degree Of risk aversion only affects the choice of balanced portfolios. The more risk averse you are, the less you allocate your capital to the optimal risky portfolio. Question: Which of the following securities would a risk- averse investor always choose as his sky asset in his balanced portfolio, given that a Treasury- bill has a rate of return of 5%? Correct Answer: security C: E(r)- 12%; standard deviation Question: Having a kinked capital allocation line can be a result of: Correct Answer: Question: Which of the following securities would a risk- risky asset in his balanced portfolio, given that a TreasurY bill has a rate of return of Selected Answer: Question: Suppose your initial wealth is 51000 The risk free asset makes up 40% four optimal balanced portfolio. Tellers makes up 15% of your optimal risky portfolio. HOW much do you invest in Tellers? Selected Answer: Correct Answer: Response Feedback: $240 $210 Amount invested in your optimal risky portfolio = 51000 x 140% = 51400; Amount invested in Tellers = $xx 15% = $210 Cannot be determined Security C: E(r) 1 Standard deviation = Security C has the highest reward to variability ratio. Reward to variability ratio (0. 12 0. 05)/0. 1 0. The borrowing rate exceeding the lending rate Question: Your optimal balanced portfolio consists of an optimal risky portfolio w tit expected return of 20% and standard deviation of returns of 10% and a risk; free asset with expected return off%. Your level to risk aversion is 8. What is the proportion of funds allocated to the optimal portfolio of risky assets (your)? Correct Answer: Question: It investors can borrow and lend at the same risk free rate, which one of the following statements is correct? Correct Answer: The capital allocation line sis straight line 200% Question: If the borrowing rate is higher than the lending g rate, which one of the following statements is correct? Investors with different degrees Of risk aversion Will always choose the same portfolio of risky assets Portfolios lying on different regions Of the capital allocation line have different reward to variability ratios If the borrowing rate is higher than the lending rate, this Will result in a kinked capital allocation line, meaning i) an investors degree of risk aversion affects the choice of the ARP, and ii) portfolios that lie on the CAL may have different reward to variability ratios. Question: Which of the following securities would a risk, bill has a rate of return of 5%? Selected Answer: Correct Answer: Response Feedback: Question: Which of the following statements regarding the capital a Location line is false? Selected Answer: Correct Answer: Response Feedback: The capital allocation line is also called the efficient frontier of risky assets n the absence of a risk-free asset Both A and C are true balanced portfolios that combine a risk-free asset with a portfolio of risky assets and C are true. Cannot be determined Security C: 12%; Standard deviation = ratio = (0. 12 0. 05)/0. 1 = 0. 7 Online Quiz for SIMI Question: As diversification increases, the toot I of a portfolio approaches Question: Which of the following is true regarding RE? Question: Which of the following is correct about the stocks alpha? Selected Answer: Correct Answer: Response Feedback: Question: The index MO del has been estimated for stocks A and g with the following results: RA- 0. 1 + 0. 02 + 1. ARM SMS -0. 20 s(EAI) s 0. 0 The standard deviation of returns of stock A is Correct Answer: Question: The Security Characteristic Line (SSL) Selected Answer: Correct Answer: Response setback: plots the excess return on a security as a function of the excess return on the market. All of the above. The security characteristic line, which plots the excess return of the security as a function of the excess return Of the market allows one to estimate both the alpha and the beta of the security. 0. 2335 under CAMP, alpha is zero at all times under CAMP, the value of alpha is zero when the market is at equilibrium Lender CAMP, the expected (equilibrium) value Of alpha is zero, although alpha could be positive, negative or zero the variance of the market portfolio Question: Analysts may use regression analysis to estimate the market model for a stock. When doing so, the intercept of the regression line is an estimate of . Selected Answer: the a of the asset Correct Answer: Response Feedback: Question: The Security Characteristic Line (SIC_) associated with the single- index model sis plot of Correct Answer: Question: The index model for stock k B has been estimated with the following result: ORB = 0,01 l, RIM ebb If MM 020 and RIB = 0. 50, the standard deviation to returns of stock B is Correct Answer: Question: Which of the following statements are true? Selected Answer: Correct Ensures: Response Feedback: the characteristic line is a regression output of the security market line. It is common to ignore the risk free rate and estimate the market model instead. A is incorrect because SMS shows you the relationship between the return Of a security in relation to its systematic risk (as measured by b) whereas the characteristics line shows the relationship between a stocks excess return to the markets excess return. B is also incorrect because a large alpha could be accompanied by a I-stats Of less than I . 96 (or 2 as per the rule Of thumb), hence making the output insignificantly different from O. RE measures the proportion of variation of the stocks excess return that is explained by the 0. 3111 the securitys excess returns on the vertical axis and the market indexs excess returns on the horizontal axis. None of the above The market model is a regression of total stock returns on total market returns. The intercept is neither b, s nor d, and is not the a to the asset, which is the intercept of the single index model which uses excess returns. As awe. shred.. Markets excess return, not the other way around. Hence C is incorrect. D is correct as practitioners typically use the market model instead of following the single index model strictly. Question: A single- index model uses as a proxy for the systematic risk factor. Correct Answer: Question: As diversification increases, the total variance Of a portfolio approaches . Selected Answer: none of the above Correct Answer: Response setback: Question: Analysts may use regression analysis to estimate the market model for a stock.