« previous next »

Author Question: How do the mean and standard deviation of the total amount that this investor earns in one year ... (Read 73 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
on: Jun 24, 2018
How do the mean and standard deviation of the total amount that this investor earns in one year change as the 60,000 in cash available is reallocated for investment? Provide an intuitive explanation for the changes you observed here.
 
  What will be an ideal response?

Question 2

What is P(B  A )?
 
  What will be an ideal response?


GCabra

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 24, 2018
Answer to Question 1

The mean total return in the fourth question is now higher than that in the second question and the standard deviation in the fourth question is also higher than that in the second question. Higher proportions of the available cash are now being invested in the stocks with higher mean annual rates of return and higher standard deviations of annual returns; that is, stocks B and D.

Answer to Question 2

P(B  A ) = P(B  A ) / P(A ) = 0.12 / 0.40 = 0.30


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

CycleBeads help women use the Standard Days Method. CycleBeads help women use the Standard Days Method.
Calculating the Deviation IQ Score Calculating the Deviation IQ Score
How to manually find the mean, variance, and standard deviation for a set of numbers How to manually find the mean, variance, and standard deviation for a set of numbers
Find the lateral area, total surface area, and volume of the frustum Find the lateral area, total surface area, and volume of the frustum
Finding the length given total distance and distance longer than other point Finding the length given total distance and distance longer than other point
Standard Symbols Used in Pedigrees Standard Symbols Used in Pedigrees
Video: Frequency of stimulation and force (Recruitment of motor units and force)

For a complete list of videos, visit our video library