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

Author Question: An investor estimates that there is a 75 chance that a particular mutual fund's price will increase ... (Read 31 times)

WhattoUnderstand

  • Hero Member
  • *****
  • Posts: 517
on: Aug 1, 2018
An investor estimates that there is a 75 chance that a particular mutual fund's price will increase to 100 per share over the next three weeks, based on past data. Interpret the 75 probability.

Question 2

The probability density function f(x) for a uniform random variable X defined over the interval 2, 10 is
 a. 0.20 c. 4
  b. 8 d. None of these choices.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

trampas

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Aug 1, 2018
Answer to Question 1

We interpret the 75 figure to mean that if we had an infinite number of funds with exactly the same economic and market characteristics as the one the investor will buy, 75 of them will increase in price to 100 over the next three weeks.

Answer to Question 2

D


WhattoUnderstand

  • Member
  • Posts: 517
Reply 2 on: Aug 1, 2018
Gracias!

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Many diesel fuel additives increase the cetane rating which results in improved fuel economy. Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
Distribution Patterns and Population Size Estimates (Bio 30) Distribution Patterns and Population Size Estimates (Bio 30)
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Muscle cell structures - actin, myosin and titin filaments

For a complete list of videos, visit our video library