« previous next »

Author Question: Katie is given the following information about the returns on two stocks: Compute the expected value ... (Read 70 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
on: Aug 1, 2018
Katie is given the following information about the returns on two stocks: Compute the expected value of the portfolio composed of 30 stock 1 and 70 stock 2.

Question 2

The probability of success on any trial of a binomial experiment is 20. Find the probability that the proportion of success in a sample of 400 is:
 a. less than 18.
  b. more than 18.
  c. between 18 and 22.


cloud

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Aug 1, 2018
Answer to Question 1

E(Rp) = w1E(R1) + w2E(R2) = (0.30)(0.10) + (0.70)(.15) = 0.135

Answer to Question 2

a. 0.1587
b. 0.8413
c. 0.6826


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Messenger RNA (mRNA) carries genetic information from the nucleus to the cytoplasm for protein synth Messenger RNA (mRNA) carries genetic information from the nucleus to the cytoplasm for protein synth
Healed bone fractures can provide clues about activities and fresh fractures can yield information a Healed bone fractures can provide clues about activities and fresh fractures can yield information a
Coding of Olfactory Information Coding of Olfactory Information
The NIOSH Pocket Guide entry for gasoline. Useful information includes health effects and chemical ... The NIOSH Pocket Guide entry for gasoline. Useful information includes health effects and chemical ...
Use the information in the above table to establish a Born-Haber cycle to determine the ... Use the information in the above table to establish a Born-Haber cycle to determine the ...
The expected results of two generations of semiconservative replication The expected results of two generations of semiconservative replication
Video: Heart sounds

For a complete list of videos, visit our video library