This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Consider an investment with the following payoffs and probabilities: State of the Economy ... (Read 52 times)

Haya94

  • Hero Member
  • *****
  • Posts: 558
on: Jul 1, 2018
Consider an investment with the following payoffs and probabilities: State of the Economy Probability Return GDP grows slowly .70 1,000 GDP grow fast .30 2,000 Let the expected value in this example be 1,300 . How do we find the standard deviation of the investment?
 a.  =   (1000-1300)2 + (2000-1300)2
  b.  =   (1000-1300) + (2000-1300)
  c.  =   (.5)(1000-1300)2 + (.5)(2000-1300)2
  d.  =   (.7)(1000-1300) + (.3)(2000-1300)
  e.  =   (.7)(1000-1300)2 + (.3)(2000-1300)2

Question 2

If a car salesman is paid a fixed salary, the owner is most likely to see
 a. A large volume of sales, with large margins
  b. A large volume of sales with no margins
 c. Low to no sales with low margins
 d. Low sales but with large margins


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Swizqar

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jul 1, 2018
Answer to Question 1

e

Answer to Question 2

c


Haya94

  • Member
  • Posts: 558
Reply 2 on: Jul 1, 2018
Gracias!

lcapri7

  • Member
  • Posts: 350
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Events of the absorptive state. Events of the absorptive state.
Using outgroups to infer the ancestral state Using outgroups to infer the ancestral state
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
Reaction 1: The First ATP Investment Reaction 1: The First ATP Investment
State the amplitude, period, equation of the axis, and maximum and minimum value State the amplitude, period, equation of the axis, and maximum and minimum value
Conversion of F+ to an Hfr state occurs by integration of the F factor Conversion of F+ to an Hfr state occurs by integration of the F factor
Video: Epidural Hematoma

For a complete list of videos, visit our video library