Consider the dataset "Vgamestock.csv" where there are six variables defined as

• ATVI: Daily Closing Index for Activision Blizzard, Inc. between 08/17/17-
• 08/16/18
• ATVIRet: Daily Return for Activision Blizzard, Inc. between 08/17/17-08/16/18
• EA: Daily Closing Index for Electronic Arts Inc. between 08/17/17-08/16/18
• EARet: Daily Return for Electronic Arts Inc. between 08/17/17-08/16/18

TTWO: Daily Closing Index for Take-Two Interactive Software, Inc. between 08/17/17-08/16/18

TTWORet: Daily Return for Take-Two Interactive Software, Inc. between 08/17/17-08/16/18

PLEASE SHOW ALL CORRECT R CODES FOR EACH QUESTION.

Data File can be found here:

https://drive.google.com/file/d/1vRQBNAsKTPFrB6fc10IKeOMBe5R8g1I7/view?usp=sharing

Assume that you have $1 to invest in these 3 stocks. In our new portfolio, you have decided to put 30% of your money into Activision Blizzard, Inc., 20% into Electronic Arts Inc. and the rest into Take-Two Interactive Software, Inc.

Q9.What is the expected return from the new portfolio? a) -2% b) -0.1% c) -1% d) -10%

Q10.What is the standard deviation of the new portfolio? a) 1.8% b) 2.1% c) 1.5% d) -1.5%

Q11.Which option is better if you are only trying to maximize expected return?

a) Put all money into ATVI b) Put all your money in EA c) Put all your money into TTWO d) Put your money in the new portfolio.

Q12.Which option is better if you are only trying to minimize risk (standard deviation)? a) Put all money into ATVI b) Put all your money in EA c) Put all your money into TTWO d) Put your money in the new portfolio.

A lottery is to be conducted in which 10,000 tickets are to be sold for $1 each. Six winning tickets are to be randomly selected: one grand prize winner of $5000, one second prize winner of $2000, one third prize winner of $1000 and three other winners of $500 each.

Q13.Let X represent thenet winningsof a person who purchases one ticket in the lottery. Obtain the probability distribution of X and compute the probability that the person will lose money.

a) 0.0003 b) 0.0001 c) 1.00 d) 0.9994

Q14.Compute the expectednet winningsfrom buying a ticket in the lottery. a) 0.05 b) 1.05 c) -0.05 d) -1.05

Logging trucks have a problem with tire failures due to blowouts, cuts and large punctures; these trucks are driven fast over very rough, temporary roads. Assume that such failures occur according to a Poisson distribution with a rate of4 per 10,000miles.

Q15.If a truck drives1,000miles in each week, what is the probability that it does not have any tire failures?

a) 0.67 b) 0.72 c) 0.58 d) 0.018

Q16.If a truck drives1,000miles in each week, what is the probability that it has at least two failures?

a) 0.673 b) 0.061 c) 0.589 d) 0.90

Q17.What is the expected value of the number of tire failures per a 1,000 miles drive? a) 0.4 b) 0.2 c) 0.632 d) 4

Q18.What is the standard deviation of the number of tire failures per a 1,000 miles drive?

a) 2 b) .2 c) 0.632 d) 4