Answered: The following table tabulates the…

The following table tabulates the earnings for a particular investment plan with corresponding probabilities: Earnings Probability $400 0.3 $250 0.1 $30 0.2 -$100 0.3 -$150 0.1

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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You are deciding to launch your own jewelry line. After researching the market, you predict you have a 37% chance of earning $5,200, a 28% chance of breaking even, and a 35% chance of losing $3,800. Calculate the expected value. Is this a good investment? Explain.
Granny Maggie has been investing in government bonds and corporate stocks since her mid 30’s. Now, in her60s, she is interesting to try to invest in gold after receiving some advice from her friend. She would like toinvest in gold and is aware that the returns on such an investment can be quite volatile.Read carefully the following table of states, probabilities, and returns. Probability Return Boom 0.1 40.00 % Good 0.2 30.00% OK 0.3 15.00% Level 0.2 2.00% Slump 0.2 -12.00% You are asked to determine the expected return and the standard deviation of the return on Granny’s goldinvestment.
You don't need to be rich to buy a few shares in a mutual fund. The question is, how reliable are mutual funds as investments? This depends on the type of fund you buy. The following data are based on information taken from a mutual fund guide available in most libraries.A random sample of percentage annual returns for mutual funds holding stocks in aggressive-growth small companies is shown below. -1.2 14.3 41.9 17.9 -16.8 4.4 32.6 -7.3 16.2 2.8 34.3 -10.6 8.4 -7.0 -2.3 -18.5 25.0 -9.8 -7.8 -24.6 22.8 Use a calculator to verify that s2 ≈ 350.311 for the sample of aggressive-growth small company funds.Another random sample of percentage annual returns for mutual funds holding value (i.e., market underpriced) stocks in large companies is shown below. 16.3 0.4 7.4 -1.3 -3.3 19.4 -2.5 15.9 32.6 22.1 3.4 -0.5 -8.3 25.8 -4.1 14.6 6.5 18.0 21.0 0.2 -1.6 Use a calculator to verify that s2 ≈ 136.430 for value stocks in large companies.Test the claim that the population…
A consultant has been hired to redesign a company's production facility. The consultant estimates the probabilities of her potential profit as shown in the table below. What is her profit expectation? $ Profit/Loss $40,000 $30,000 $20,000 $10,000 $5,000 Probability 0.06 0.20 0.38 0.30 0.06
Q17. A single share of a stock was purchased prior to the company's release of its quarterly report. There is a 58% chance that the company will meet the quarterly sales expectations for its new product two weeks from now, and the value of the stock will go to $440. Otherwise, the company will not meet the quarterly sales expectations, and the value of the stock will go down to $100. What is the expected value of the stock two weeks from now? (Round to the nearest dollar. Do not enter $ sign.)
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You buy a stock that has an annual expected return of 20% and a standard deviation of 25%. Last year, investors in the stock lost 32.5% of their money and the year before they gained 40%. What is the probability that the outcome on this stock will be better than -32.5%, but less than +40% this year? a 18.75% b. 52.50% c. 78.82% d. 22.97% e. 77.03%
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