« previous next »

Author Question: Katie is given the following information about the returns on two stocks: Compute the expected value ... (Read 73 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?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Examining the survivorship curve of a Dall mountain sheep population reveals information on the caus Examining the survivorship curve of a Dall mountain sheep population reveals information on the caus
The Emergency Action Guide entry for styrene. Useful information includes emergency response ... The Emergency Action Guide entry for styrene. Useful information includes emergency response ...
Milk Label Containing Information about the Use of rBGH Milk Label Containing Information about the Use of rBGH
The five skills of the element Collection of Information The five skills of the element Collection of Information
The expected value for a binomial probability distribution is _____. The expected value for a binomial probability distribution is _____.
Simplified diagram of information flow (the central dogma) from DNA to RNA Simplified diagram of information flow (the central dogma) from DNA to RNA
Video: Cell mediated immune response to a viral infection Animation

For a complete list of videos, visit our video library