An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result in a profit of $30,000. If the economy grows at a moderate pace, the investment will result in a profit of $10,000. However, if the economy goes into recession, the investment will result in a loss of $30,000. You contact an economist who believes there is a 20% probability the economy will remain strong, a 60% probability the economy will grow at a moderate pace, and a 20% probability the economy will slip into recession. What is the expected profit from this investment?The expected profit is $_____. (Type an integer or a decimal.)There are no graphs or diagrams in this image.

Given the investment will result in a profit of $30,000. If the economy grows at a moderate pace,…

Answered: n investment counselor calls with a hot…

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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Similar questions

Dystopia county has three bridges. In the next year, the Elder bridge has a 11% chance of collapse, the Younger bridge has a 3% chance of collapse, and the Ancient bridge has a 17% chance of collapse. What is the probability that exactly one of these bridges will collapse in the next year? (Round your final answer to four decimal places. Do not round intermediate calculations.)
An option to buy a stock is priced at $210. If the stock closes above 30 on May 15, the option will be worth $900. If it closes below 20, the option will be worth nothing, and if it closes between 20 and 30 (inclusively), the option will be worth $180. A trader thinks there is a 45% chance that the stock will close in the 20–30 range, a 25% chance that it will close above 30, and a 30% chance that it will fall below 20 on May 15. How much do they expect to gain? Should they buy the stock option? Explain.
Suppose you pay $5 to roll a fair dice. If the top face shows an odd number, you win $0 but if it shows an even number, you win $10. What is your expected profit?
A 38 -year-old woman purchases a $200,000 term life insurance policy for an annual payment of $370. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999052. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems.
An investment counselor calls with a hot stock dp. He beleves that if the economy remains strong, the Investment will result in a profit of $60,000. It the economy grows at a moderate pace, the Investment will result in a proft of $20,000. However, if the economy goes into recession, the investment will result in a loss of $00,000. You contact an economist who beleves there is a 20% probability the economy will remain strong, a 70% probability the economy will grow at a moderate pace, and a 106 probabilty the economy will slip into recession. What is the expected proftt from this investment? The expected proft is s (Type an integer or a decimal) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Anr can
Suppose that you and a friend are playing cards and you decide to make a friendly wager. The bet is that you will draw two cards without replacement from a standard deck. If both cards are clubs, your friend will pay you $⁢41 . Otherwise, you have to pay your friend $⁢5 . Step 1 of 2 : What is the expected value of your bet? Round your answer to two decimal places. Losses must be expressed as negative values.
Four
Your insurance company has a policy to ensure personal property. Assume you have a laptop worth $2,400 and there's a 4% chance that the laptop will be lost or stolen during the next year. What would be a fair premium for the insurance? We are assuming that the insurance company earns no profit
In a coin and die game, you roll a fair six-sided die and toss a coin. If you roll a 6 and toss a tails, you gain $110. Otherwise, you lose $10. If you were to play the game 45 times, how much money can you expect to gain or lose? Round the expected value for one game to the nearest cent. Enter an expected loss as a negative number.
Please do question 1f and 1g handwritten
You have inherited a lottery ticket that may be a $5,000 winner. You have a 35% chance of winning the $5,000 and a 65% chance of winning $0. You have an opportunity to sell the lottery ticket for $1,500. What is your expected return and what should you do if are risk neutral?
Please help.

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