You have $200 that you would like to invest in stocks. You have narrowed youroptions down to two stock options: Stock A and Stock B. The table below showstheir possible net gains and probabilities 1 year after the investment.Stock AStockNet GainN ProbabilityYNet GainProbability|-$400-$100.1.2-$50.2$0.6$0.4$400.2$50.2$100.1 Find the standard deviation for Stock A. Round your final answer totwo decimal places.b.С.The expected value and standard deviation of Stock B is 0 and 223.61respectively. If you wanted to be cautious with your investment, which stockoption should you choose? Explain your reasoning.

The formula for standard deviation is, sd=E(X2)-(E(X))2Here,E(X)=∑X*P(X)E(X2)=∑X2*P(X)

You have $200 that you would like to invest in stocks. You have narrowed your options down to two stock options: Stock A and Stock B. The table below shows their possible net gains and probabilities 1 year after the investment. Stock A Stock B X Net Gain Probability %3D Y = Net Gain Probability -$400 .2 -$100 .1 -$50 .2 $0 .6 $0 .4 $400 .2 $50 .2 $100 .1

You have $200 that you would like to invest in stocks. You have narrowed your options down to two stock options: Stock A and Stock B. The table below shows their possible net gains and probabilities 1 year after the investment. Stock A Stock B X Net Gain Probability %3D Y = Net Gain Probability -$400 .2 -$100 .1 -$50 .2 $0 .6 $0 .4 $400 .2 $50 .2 $100 .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

See similar textbooks

Similar questions

A basketball player hits three-point shots 45% of the time. If she takes 4 shots during the game, what is the probability that she misses the first shot and hits the last three shots?
A investor estimates that, in a year’s time, a certain stock has a 30% chance to be worth $125 per share, a 45% chance to be worth $90 per share, and a 25% chance to be worth$60 per share. Determine the expectation of the price per share of the stock in a year’s time.
A lottery offers one $2000 prize, one $900 prize and five $200 prizes.One thousand tickets are sold at $5 each. Find the expectation if a person buys oneticket.
An insurance company sells a $20,000, seven-year term life insurance policy to an individual for $1,700. Find the expected return for the company if the probability the individual will live for the next seven years is 0.92. (Round your answer to the nearest cent.)$
Answer #30 please. Show work.
Suppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…
The annual premium for a $20,000 insurance policy against the theft of a painting is $300. If the probability that the painting will be stolen during the year is 0.02, what is your expected return from the insurance company if you take out this insurance? Upload your answer with your work and explanations here
If the probability that the Islanders will beat the Rangers in a game is 81%, what is the probability that the Islanders will win at least three out of five games in a series against the Rangers? Round your answer to the nearest thousandth.
It is the beginning of September and you have been offered the following deal to go heli-skiing. If you pick the first week in January and pay for your vacation now, you can get a week of heli-skiing for $2,900. However, if you cannot ski because the helicopters cannot fly due to bad weather, there is no snow, or you get sick, you do not get a refund. There is a 30% probability that you will not be able to ski. If you wait until the last minute and go only if you know that the conditions are perfect and you are well, the vacation will cost you $4,600. You estimate that the pleasure you get from heli-skiing is worth $6,700 per week to you (if you had to pay more than that, you would choose not to go). If your cost of capital is 11% per year, should you book ahead or wait? You should because the NPV of this choice is $ book ahead wait (Round to two decimal places.)
An option to buy a stock is priced at $150. If the stock closes above 30 next Thursday, the option willbe worth $1000. If it closes below 20, the option will be worth nothing, and if it closes between 20and 30, the option will be worth $200. A trader thinks there is a 50% chance that the stock will closein the 20-30 range, a 20% chance that it will close above 30, and a 30% chance that it will fall below20. a) Create a valid probability table.b) How much should the trader expect to gain or lose?c) Should the trader buy the stock? Why?
In old gangster movies on TV, you often hear of "number runners" or the "numbers racket." This numbers game, which is still played today, involves betting $1 on the last three digits of the number of stocks sold on a particular day in the future as reported in The Wall Street Journal. If the payoff is $600, what is the expectation for this numbers game?
Give examples of real life application for the properties of probability.