A certain portfolio's value increases by 30% during a financial boom, increases by 5% during normaltimes and it decreases by 2% during a recession. Suppose each scenario is equally likely and youinvested $200 in this portfolio.1.Create a probability model for your net gain.2.What is the expected net gain when you invest $200 in this portfolio?3. What's the standard deviation of your net gain when you invest $200 in this portfolio?

For the defined economic scenarios, the changes in portfolio values are given as: Economic…

Answered: A certain portfolio's value increases…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

28 The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance company will sell him a $20,000 life insurance policy for this length of time for a premium of $200. What is the expected gain for the insurance company? * $200 $100 $250 $150
Classify the following statement as an example of classical probability, empirical probability, or subjective probability. Explain your reasoning. You think that a hockey team's proability of winning its next game is 0.57. This is an example of probability, since 7 tab lock esc subjective classical empirical Q A Z 2 W S 3 X 20 E $ 4 288 FA R C 07 20⁰ 50 F T B H
You flip a fair coin 10 times. What is the probability that you flip all tails? Answers should be percentages correct to five decimal places.
Answer not correct. Please solve using R calculator and show all work. thank you.
You buy a stock that has an annual expected return of 20% and a standard deviation of 25%. Last year, investors in the stock lost 32.5% of their money and the year before they gained 40%. What is the probability that the outcome on this stock will be better than -32.5%, but less than +40% this year? a 18.75% b. 52.50% c. 78.82% d. 22.97% e. 77.03%
A certain portfolio’s value increases by 30% during a financial boom, increases by 5% during normal times and it decreases by 2% during a recession. Suppose each scenario is equally likely and you invested $200 in this portfolio. . 1.Create a probability model for your net gain. 2.What is the expected net gain when you invest $200 in this portfolio? 3.What’s the standard deviation of your net gain when you invest $200 in this portfolio?
WFC Average St. Dev. Min 0.65% 10.26% -28.99% Мах 27.51% 25. Based on the table above, what is the probability of losing -7% or more for WFC? A. 0.07 B. 0.14 C. 0,23 D. 0.29 %3D E. 0.31 26. If you have $200,000 invested in WFC, what is the dollar value of VaR of losing -7% or more? A. $14,000 B. $28,000 C. $46,000 D. $58,000 E. $62,000 27. Based on the table above, there is 30% chance that your losses for WFC will be greater than A. -0,30% B. 2.15% C. 4.73% D. 7% E. -14% 28. Based on the table above, there is 30% chance that your dollar losses for WFC will be greater than if you have $200,000 invested in ti? A. -S600 B. $4,300 C. -$9,460 D. -$14,000 E. S28,000
An insurance company sells a $20,000, seven-year term life insurance policy to an individual for $1,700. Find the expected return for the company if the probability the individual will live for the next seven years is 0.92. (Round your answer to the nearest cent.)$
Please see attached.
In a particular week, the probability that it will rain is 75% each day. What is the probability that it will rain 4 of the 7 days this week? Round to three decimal places. 1
Part 2) Five hundreds tickets are sold at $ 2 each for a smartphone valued at $ 1000. What is the expected value of the gain if you purchase one ticket?
A Stat 510 student works at the IT Help Desk at Hale Library. She works there Tuesdays and Thursdays 6 pm - 10 pm and on Sunday 1 pm - 5 pm. On average, she receives 2.4 walk-ins per shift on Tuesdays and Thursdays and 3.2 walk-ins on Sundays. Assume walk-in arrivals occur randomly at a constant rate, and different periods of time are independent. Assume that the proportion of walk-in problems that have a quick solution follows a Beta distribution.

SEE MORE QUESTIONS

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS