Suppose there are n assets which are uncorrelated. (They might be n different “wild cat” oil well prospects.) You may invest in any one, or in any combination of them. The mean rate of return r¯ is the same for each asset, but the variances are different. The return on asset i has a variance of σ2i for i = 1, 2, . . . , n. (a) Show the situation on an r¯-σ diagram. Describe the efficient set. (b) Find the minimum-variance point. Express your result in terms of

Q: The mean cost of domestic airfares in the United States rose to an all-time high of $375 per ticket.…

A: The z-score refers to the distance between a data value and itsμ in the form of the number of σ. If…

Q: aaaaaa A soft drink machine outputs a mean of 27 ounces per cup. The machine's output is normally…

A: The objective of the question is to find the probability of the soft drink machine filling a cup…

Q: The promoter of a football game is concerned that it will rain. She has the option of spending…

A: Given: spending ​$14,040 on insurance that will pay ​$39,000 if it rains.Revenue from the game will…

Q: Suppose that the distribution of Uber rides around the quoted arrival time is normally distributed.…

A: The objective of the question is to understand the application of the empirical rule in a real-world…

Q: Beer bottles are filled so that they contain an average of 330 ml of beer in each bottle. The amount…

A: The probability that a randomly selected 6-pack of beer will have a mean amount less than 328 ml is:…

Q: The number of hits per day on the Web site of a tool company is normally distributed with a mean of…

A: Given in the question Mean= 600 Standard deviation = 120

Q: Suppose that themean cost of domestic airfares in the United States is $399 per ticket, with a…

A: Mean cost of airlines = $399Standard deviation = $119 We have to find the cost of the highest 5%…

Q: Suppose x is a normally distributed random variable with u = 50 and o = 3. Find a value of the…

A:

Q: ording to AAA, the price of a gallon of regular, unleaded gas across gas stations in North olina is…

A:

Q: Suppose that Paul Atreides scored 41.5 on Exam 2. If everyone’s exam scores follow a normal…

A: The objective of the question is to find the probability that someone else's score is higher than…

Q: 2. The annual commissions earned by sales representatives of Machine Products Inc., a manufacturer…

A: Normal distribution is the case of data distribution where data is not skewed. It is characterised,…

Q: A statistics professor plans classes so carefully that the lengths of her classes are uniformly…

A: The provided information are: Maximum value (b) = 59 Minimum value (a) = 49 Consider X be the random…

Q: Find the probability of rolling a standard 6-sided die 23 times and getting 10 or more twos. Select…

A: Step 1:Step 2:Step 3:Step 4:Hint using R codes P(x≤a)=pbinom(a,n,p)Probability that 10 or more twos…

Q: Suppose commute times in a large city are normally distributed and that 65.20% of commuters in this…

A: The following formula converts an X value into a Z score, also called a standardized score:…

Q: Suppose ACT Reading scores are normally distributed with a mean of 21.4 and a standard deviation of…

A: The objective of the question is to find the minimum ACT Reading score required for a student to be…

Q: Suppose that two investments have the same three payoffs, but the probability associated with each…

A: We can use the expected utility theorem, which states that the best decision is the one that…

Q: According to the U.S. Bureau of the Census, about 75% of commuters in the United States drive to…

A: Probability refers to the certainty associated with an event. It is ascertained by dividing the…

Q: Suppose that a family has 4 children. Also, suppose that the probability of having a boy is Find the…

A: Here we calculate the probability having boy in a family so calculation of the following as follow-

Q: The mean of X = 10 and the standard deviation of X = 2. The variable X is linearly transformed such…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: A large number of students took a departmental math test 6.5% of students scored  88 or more from…

A:

Q: The number of auto parts that a company produces follows a normal distribution. The company has two…

A: The normal distribution, also known as the Gaussian distribution, is a symmetrical probability…

Q: A NUMMI assembly line, which has been operating since 1984, builds 900 cars and trucks in a week.…

A: The event of having defective cars follows a binomial distribution. This is because there are a…

Q: Suppose A and B are two events with probabilities: P(A) = .30, P(B°) = .45, P(ANB) = .15. Find the…

A: The provided information are: PA=.30PBc=.45PA ∩B=.15

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…

A: The concept of portfolio risk and return is crucial to the modern finance and asset management…

Q: one standard deviation

A: Members surveyed= n=5  study hour of member1 =12 hours, member2=18 hours, member3= 7 hours,…

Q: The probability distribution for the number of automobiles sold during a day (x) at Bob Iron Motors…

A: ∑f(x)=1 ⇒0.001+0.007+0.034+0.099+0.188+X1+0.220+0.136+0.055+0.015+0.001=1 ⇒X1=1-0.756=0.244 Mean=∑x…

Q: Given that z is a standard normal random variable, find z for each situation. (Round your answers to…

A: Here, probabilities using standard normal are to be calculated .

Q: A large number of MBA applicants are given an aptitude test. Scores are normally distributed with a…

A: To find the probability that a randomly chosen MBA applicant scores 600 or above on the aptitude…

Q: A courier company guarantees its customers that the average time to pick up their packages is 20…

A: Process capability index is a statistical tool that measures the ability of any process to produce…

Q: Insurance: An insurance company sells a l-year term life insurance policy to an 84-year-old man. The…

A: Given  Insurance premium =$1600 The probability that the 84-year old man will be alive 1 year later…

Q: The accompanying table gives the outcomes and probability distribution of the number of times a…

A: The expected value tells us about the anticipated value of an event and it is computed by…

Q: 2. A city had an unemployment rate of 7%. The mayor pledged to lower this figure and supported…

A: The objective of this question is to calculate the probability of making a Type II error, which is…

Q: The number of major snowstorms (that shut down businesses) has a Poisson distribution with rate 0.4…

A: The probability of an event is the proportion of times the event happens out of a large number of…

Q: Tabulate the investment opportunity set of the two risky funds. (Round y answers to 2 decimal…

A: The expected return is the amount of profit or loss an investor can anticipate receiving on an…

Q: Consider a very large number of students taking a college entrance exam such as the SAT. And suppose…

A: A z-score represents a specific value on the standard normal curve and measures the difference…

Q: Assume that the traffic to the web site of Smiley's People, Inc., which sells customized T-shirts,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The table below shows the probability distribution of X. Find V(X), that is, the variance of X to…

A: A probability distribution depicts the expected outcomes of possible values for a given data…

Q: proportion of vehicles which drive above the speed limit on a freeway is 85%.  Suppose 100 vehicles…

A: A probability distribution portrays the normal results of potential qualities for a given…

Q: A bakery would like you to recommend how many loaves of its famous marble rye bread to bake at the…

A: Provided information:  The cost of loaf = $2 per unit and selling price = $7 per unit The…

Q: A soft drink machine outputs a mean of 27 ounces per cup. The machine's output is normally…

A: To solve this problem, we need to find the probability of filling a cup with a volume between 21 and…

Q: The cost C(Q) of producing a quantity Q of widgets to satisfy demand is C(Q) = 4000+20Q, but the…

A: Given:Mean of demand = 500Standard deviation of demand = 200C(Q) = 4000+20Q To find:Mean of cost =…

Q: 1. Suppose the prices of used cars in the market are normally distributed with a mean of $15,000 and…

A: Mean (μ): This is the average price of used cars in the market, given as $15,000.Standard Deviation…