(a) Arina plans to form an investment portfolio that comprised of 50 percent investment inShare X, 25 percent investment in Share Y and 25 percent in Share ZThe following are the estimated returns for all the three types of financial assets:YearProbability (P)Expected Return (%) of Financial AssetsYStrong0.48101520Weak0.521061Calculate:i. Expected return for each share.ii. Expected return for investment portfolio of share X, Y and Z.iii. Standard deviation for the investment portfolio.|

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Answered: (a) AWUS pla Share X, 25 percent…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question 2 (Simulation) The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. Probability distributions for the purchase cost, the labor cost, and the transportation cost are as follows: Labour Cost Transportation Cost (S) Purchase Cost (S) Probability (S) Probability Probability 10 0.25 20 0.1 0.75 0.45 22 0.25 0.25 12 0.3 24 0.35 25 0.3 Assume that these are the only costs and that the selling price for the product will be S45 per unit. a. Provide the base (most likely)-case, worst-case, and best-case calculations for the profit per unit. b. Set up intervals of random numbers that can be used to randomly generate the three cost components, and find the average profit based on 10 simulation trials. Show your simulation model (including the formulas sed) as developed with Excel. e. Using the random numbers 0.3726, 0.5839, and 0.8275, calculate the profit per unit. ( d. Management believes the project may not be…
Español Investment Return Construct a probability distribution for the data and draw a graph for the distribution. The probabilities of a return on an investment of 1 1 15 15 15 11 and respectively. $3000, $8000, $10,000, and $14,000 are 15 Part: 0/2. Part 1 of 2 Enter your answers as fractions or as decimals rounded to 2 decimal places. P (X) $3000 $8000 $10,000 $14,000
232 Chapter 5 Probability 5.4 a. Explain why the variable "number of saved telephone numbers on a person's cell phone" is discrete. b. Explain why the variable "weight of a statistics textbook" is continuous.
The following represents the probability distribution for the daily demand of microcomputers at a local store. Demand Probability 0 .1 1 .2 2 .3 3 .2 4 .2 The expected daily demand is _____. a. 1.0 b. 2 c. 2.2 d. 4
A Probability Distributions Mix O Formative A Outline drawing of your picture E X /formatives/5f7753a3e8a98c6b7a4eldf5 ades and Attend... spanish A art A english A math - Google Podcasts 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 0.2415 An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 51% of customers never make a claim, 30% of customers require a small repair costing an average of $45, and 19% of customers request a full refund costing $180. What is the long-term average cost the retailer should expect to pay to its customers per claim? $47.70 $112.50 $4500 $75.00
For each of the following probability distributions, calculate the expected value and standard deviation:
2. Statistical measures of stand-alone risk Remember, the expected value of a probability distribution is a statistical measure of the average (mean) value expected to occur during a possible circumstances. To compute an asset's expected return under a range of possible circumstances (or states of nature), multiply the anticipated return expected to result during each state of nature by its probability of occurrence. Consider the following case: Ethan owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep Broadcasting (BSB). Three- quarters of Ethan's portfolio value consists of HDS's shares, and the balance consists of BSB's shares. Each stock's expected return for the next year will depend on forecasted market conditions. The expected returns from the stocks in different market conditions are detailed in the following table: Market Condition Probability of Occurrence Happy Dog Soap Black Sheep Broadcasting Strong 0.50 50% 70% Normal 0.25 30% 40% Weak…
Amount of claim (to nearest $20,000) Probability $0 0.70 $20,000 0.17 $40,000 0.06 $60,000 0.04 $80,000 0.02 $100,000 0.01 A. Calculate the expected value? B. How much should the company charge as an average premium so that it breaks even on its claim costs? C. How much should the company charge to make a profit of $50 per policy?
You are given the following probability distribution for the returns on Security A and Security B: Probability 0.3 0.3 0.3 0.1 Return on Security A 37% 7% 20% -15% Return on Security B 13% 19% 26% -22% Assume you invest $4,000 in Security A and $6,000 in Security B. What are the expected return and standard deviation of your portfolio?
Q40
Calculate the six values of joint probability (5th column) and present worth PW (last column) and fill in the below table assuming a first cost of $20,000 and 12% interest rate. Annual benefits Probability Life (years) Probability Joint probability $5,000 $8,000 $10,000 $5,000 $8,000 $10,000 PW 30% 6. 66.7% 60% 66.7% 10% 66.7% 30% 33.3% 60% 33.3% 10% 33.3% O6999
Expected Value and Variance: A stock market analyst predicts the following returns for a particular stock: RETURN % PROBABILITY -10 0.2 0 0.5 10 0.3 Calculate the expected return and the variance of the returns.

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(a) AWUS pla Share X, 25 percent investment in Share Y and 25 percent in Share Z The following are the estimated returns for all the three types of financial assets: Year Probability (P) Expected Return (%) of Financial Assets Y Strong Weak 0.48 10 15 20 0.52 10 6. 1