2. UNIV Dreamers Publishing has a choice of publishing one of two financial economics books. It expects the sales period for each to be extremely short, and it estimates profit probabilities as follows: BOOK B BOOK A Probability 0.20 Probability Profit Profit PhP 2,000 0.10 PhP 1,500 PHP 1,700 0.30 PHP 2,300 0.40 0.30 PhP 2.600 0.40 PhP 1.900 0.20 PhP 2.900 0.10 PhP 2.100 Calculate the expected profit, standard deviation, and coefficient of variation for each of the books. If you were asked which of the two to publish, what would be your advice?
2. UNIV Dreamers Publishing has a choice of publishing one of two financial economics books. It expects the sales period for each to be extremely short, and it estimates profit probabilities as follows: BOOK B BOOK A Probability 0.20 Probability Profit Profit PhP 2,000 0.10 PhP 1,500 PHP 1,700 0.30 PHP 2,300 0.40 0.30 PhP 2.600 0.40 PhP 1.900 0.20 PhP 2.900 0.10 PhP 2.100 Calculate the expected profit, standard deviation, and coefficient of variation for each of the books. If you were asked which of the two to publish, what would be your advice?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:2. UNIV Dreamers Publishing has a choice of publishing one of two
financial economics books. It expects the sales period for each to
be extremely short, and it estimates profit probabilities as follows:
BOOK A
BOOK B
Probability
Profit
Profit
Probability
0.10
0.20
PhP 2,000
PHP 2,300
PhP 1,500
PhP 1.700
0.30
0.40
0.30
PhP 2.600
0.40
PhP 1.900
0.20
PhP 2.900
0.10
PhP 2.100
Calculate the expected profit, standard deviation, and coefficient
of variation for each of the books. If you were asked which of the
two to publish, what would be your advice?
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