Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give aquestionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with amean of 49.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse." What is the questionnaire score thatseparates customers who are considered risk averse from those who are not? Carry your intermediate computations to at least four decimal places. Round youranswer to one decimalplace.

Solution-: Let, X= The score on the questionnaire Given: μ=49.5,σ=16 ∴X→ N(μ=49.5,σ2=162) We fin x…

Answered: Risk taking is an important part of…

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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Risk taking is an important part of investing. In order to make suitable investment decisions on behalf of their customers, portfolio managers give a questionnaire to new customers to measure their desire to take financial risks. The scores on the questionnaire are approximately normally distributed with a mean of 50.5 and a standard deviation of 16. The customers with scores in the bottom 5% are described as "risk averse. What is the questionnaire score that separates customers who are considered risk averse from those who ar not? Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. U Continue X S Submit Terms of Use | Privacy Center
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