(Expected rate of return and risk)B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 4.4 percent. Calculate theinvestment's expected return and its standard deviation. Should Gautney invest in this security?Probability0.200.400.200.20Return- 4%4%6%8%

B. J. Gautney Enterprises is evaluating a follwing…

Answered: (Expected rate of return and risk) B.…

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 Content Area Company G has a ratio of liabilities to stockholders' equity of 0.12 and 0.28 for Year 1 and Year 2, respectively. In contrast, Company M has a ratio of liabilities to stockholders' equity of 1.13 and 1.29 for the same period. Required: Based on this information, which company's creditors are more at risk? Should the creditors of either company fear the risk of nonpayment?
It is estimated that there are 31 deaths for every 10 million people who use airplanes. A company that sells flight insurance provides $100,000 in case of death in a plane crash. A policy can be purchased for $1. Calculate the expected value and thereby determine how much the insurance company can make over the long run for each policy that it sells. POSSIDIE possib The expected value is $ (Round to the nearest cent.) Next Ce ) backspace 98888 & C@ #3 $4 8. 6. 3. { 大

Expected value of the policy for the ins.company?
R
K There is a 0.9986 probability that a randomly selected 32-year-old male lives through the year. A life insurance company charges $189 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 32-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (Type integers or decimals. Do not round.)
Fire Insurance Amari's family is moving to California and would like to purchase fire insurance. The insurance company is offering them a plan with an annual premium of $450. If there is a fire that damages the home, the insurance company will pay $250,000. It is estimated that the probabilty of a fire in your area is 0.0008. What is the expected value of the policy? If an insurance company is able to sell 20,000 of these policies, how much can the company expect to earn?
eBook Problem 4-21 (Algorithmic) A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: Decision Alternative Purchase, d Do not purchase, d₂ Rezoning Approved S₁ 650 What is the expected profit? Low resistance: State of Nature 0 Rezoning Not Approved S₂ a. If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended decision: -220 0 Expected profit: $ b. The investor can purchase an option to buy the land. Under the option, the investor maintains the rights to purchase the land anytime during the next three months while…
Hoping to diversify suppliers, a manufacturer buys the same component from three sources, with 24% of the components from vendor A, 39% from vendor B, and 37% from vendor C. Based on past experience, the manufacturer expects that vendors A, B, and C will produce defective components at a rate of 1.5%, 1.2%, and 1.8%, respectively. What is the expected proportion of defective components in the manufacturer’s stock?

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