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A investment company has an asset A that will produce a cash flow of $5,500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1.550 with prob. 0.5 and $3.500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10.350 from their portfolio of assets is and the expected value of this portfolio is, O a15: S10.335 O0.15: $10885 O 035: $1088s O035 S1033s

A investment company has an asset A that will produce a cash flow of $5,500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1.550 with prob. 0.5 and $3.500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10.350 from their portfolio of assets is and the expected value of this portfolio is, O a15: S10.335 O0.15: $10885 O 035: $1088s O035 S1033s

Intermediate Algebra
Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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A investment company has an asset A that will produce a cash flow of $5.500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1,550 with prob. 0.5 and $3.500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10,350 from their portfolio of assets is and the expected value of this portfolio is_ O a15: $10.335 O 0.15: $10885 O 035: $1088S O 035, $10.33s
Transcribed Image Text:A investment company has an asset A that will produce a cash flow of $5.500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1,550 with prob. 0.5 and $3.500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10,350 from their portfolio of assets is and the expected value of this portfolio is_ O a15: $10.335 O 0.15: $10885 O 035: $1088S O 035, $10.33s
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