Author Question: Katie is given the following information about the returns on two stocks: Compute the expected value ... (Read 75 times)

CORALGRILL2014

  • Hero Member
  • *****
  • Posts: 525
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
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
 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

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?

The average adult has about 21 square feet of skin.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

For a complete list of videos, visit our video library