QUESTION 10An investor has decided to form a portfolio by putting 35% of his money into Google's stock and 65% into Apple's stock. The investor assumes that theexpected returns will be 1896 on Google and 25% on Apple, and that the standard deviations will be 10% and 20%, respectively. What is the expected(mean) return on the portfolio?O E [Return on portfolio] = 0.2255O E [Return on portfolio] = 0.2525O E [Return on portfolio] = 0.2045O E [Return on portfolio] = 0.2450

The proportion of investments in the stocks, Google and Apple are: The expected returns of the…

QUESTION 10 An investor has decided to form a portfolio by putting 3596 of his money into Google's stock and 65% into Apple's stock. The investor assumes that th expected returns will be 1896 on Google and 259% on Apple, and that the standard deviations will be 109% and 20%, respectively. What is the expected (mean) return on the portfolio? O E [Return on portfolio] = 0.2255 O E [Return on portfolio] = 0.2525 O E [Return on portfolio] = 0.2045 O E [Return on portfolio] = 0.2450

QUESTION 10 An investor has decided to form a portfolio by putting 3596 of his money into Google's stock and 65% into Apple's stock. The investor assumes that th expected returns will be 1896 on Google and 259% on Apple, and that the standard deviations will be 109% and 20%, respectively. What is the expected (mean) return on the portfolio? O E [Return on portfolio] = 0.2255 O E [Return on portfolio] = 0.2525 O E [Return on portfolio] = 0.2045 O E [Return on portfolio] = 0.2450

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

Q38
A reference states that average daily high temperature in June in a particular city is 86°F with a standard deviation of 7, and it can be assumed that they to follow a normal distribution. We use the following equation to convert "F (Fahrenheit) to "C(Celsius) C-(F-32)=² (a) Write the probability model for the distribution of temperature in C in June in this city. (Round your standard deviation to four decimal places) ~~-[ (b) What is the probability of observing a 31°C (which roughly corresponds to 87.) temperature or higher a a randemily selected day in June in this city? Calculate using the "C model from part (a). (Round your answer to four decimal places.) (c) The probability of observing a 67.8°F temperature or higher on a randomly selected day in June this city is approximately 0.3983, Did you get the same answer or a different answer in part (b)? Are you surprised? Explain. Both sets of calculations produced approximately the same answer which isn't surprising since once we…
The lifetime of batteries is Exponential with mean 6. Batteries are sold for $100 each. If a battery lasts less than 2 years, the manufacturer will pay the purchaser the pro rata share of the purchase price. For example if the battery lasts only 1.5 years, the manufacturer will pay the purchaser (100)(2 – 1.5)/2 = 25. What is the expected amount paid by the manufacturer per battery sold?
ge=28 Returns on investment "A" are normally distributed, with mean return of US$8,500 per year and a standard deviation of US$1,000 per year. Which of the following categories of returns would you fall, if you desire to be in the top 5% of the returns from "A"? Select one: O a. US$8,500 – US$9,000 O b. US$9,800- US$10,500 c. More than US$9,700 O d. More than US$10,100
I need help figuring out how to determine the percentage of increase. For each of the following models, state what the expected value of Y is when X = 50. Also, state how the predicted value of Y changes when X increases by 5 units (i.e., a 10% increase). 1. Y = 73 + 10X X=50, y=73+10*50 = 573 Y = 573 Change = 50 units 2. lnY = 4.9 + 0.025X x = 50, y = exp(4.9 + 0.025*50) = 468.7 =exp(0.025*5)=1.13 units. Y = 468.7 Change = 1.13 units 3. Y = -632 + 328(lnX) X = 50, y=-632 + 328*(in50) = 651.1 = 328*In(5) = 527.9 Y = 651.1 Change = 527.9 units 4. lnY = 2.7 + 0.94(lnX) x=50, y=exp(2.7 + 0.94*In50) = 588.3 = exp (0.94*In5) = 4.54 Y = 588.3 Change = 4.54 units
Suppose that the lifetime of a particular electronic device has an exponential distribution with a mean of 0.25 years. What is the probability that the device will last longer than seven years? Round your answer to the nearest thousandth. P(T > 7) =
The lifetime of a certain electronic component used in a laptop computer can be modeled by an exponential distribution with a mean of 4 years, or ux B = 4 years. = (a) Compute the standard deviation of the above distribution. SD(X) = 0x = years (use two decimals in your answer) (b) What can you say about the shape of the distribution of X? The distribution of X is ? (c) You randomly pick a laptop. Find the probability that the certain electronic component will last between 1 years and 4 years. P(1 ≤ X ≤ 4) = = (Use four decimals in your answer) (d) If the electronic component in the laptop you chose in (c) has lasted at least 4 years, what is the probability it will last in total at most 8 years? (Use four decimals in your answer) (e) The manufacturer of this electronic component wishes to have a guarantee. This guarantee will state that 3% of components will be replaced free of charge. At what lifetime should the manufacturer set the guarantee, in years? years (Use two decimals in…
The figure in the popup window, shows the one-year return distribution for RCS stock. Calculate: a. The expected return. b. The standard deviation of the return. Note: Make sure to round all intermediate calculations to at least five decimal places.
Example 10: P and Q two securities, with expected returns of 15% and 24% respectively, and standard deviation of 35% and 52% respectively. Calculate the standard deviation of a portfolio weighted equally between the two securities if their correlation is -0.9.
2 The operator of a pumping station has observed that demand for water during early afternoon hours has an approximately exponential distribution with mean 100 cfs (cubic feet per second). (a) Find the probability that the demand will exceed 250 cfs during the early afternoon on a randomly selected day. (Round your answer to four decimal places.) (b) What water-pumping capacity, in cubic feet per second, should the station maintain during early afternoons so that the probability that demand will exceed capacity on a randomly selected day is only 0.02? (Round your answer to two decimal places.) cfs
Q7
I have problem in the question number #2, but the answer is with the result of question number #1