An economist has predicted that the probability of a rise

Assignment Help Finance Basics
Reference no: EM13476901

Question 1. The weekly earnings of fast-food restaurant employees are normally distributed with a mean of $395. If only 10.2% of the employees have a weekly income of more than $422.94, what is the value of the standard deviation of the weekly earnings of the employees?

Question 2. An investment advisor recommends the purchase of shares in Infogenics, Inc. He has made the following predictions:
P(Stock goes up 20% | Rise in GDP) = .6
P(Stock goes up 20% | Level GDP) = .5
P(Stock goes up 20% | Fall in GDP) = .4

An economist has predicted that the probability of a rise in the GDP is 20%, whereas the probability of a fall in the GDP is 40%.
What is the probability that the stock will go up 20%?


Reference no: EM13476901

Questions Cloud

Assume that the risk premium on the market portfolio is : suppose the risk premium on the market portfolio is estimated at 8 with a standard deviation of 22. what is the risk
Assume the real interest rate is 3 per year and the : answer the followingquestion a.suppose the real interest rate is 3 per year and the expected inflation rate is 8. what
Assume that you observe the investment performance of 200 : suppose you observe the investment performance of 200 fund managers and rank them by investment returns during the
Suppose that the rate of return on the fund portfolio is 10 : the equity fund sells class a shares with a front-end load of 6 and class b shares with 12-1 fees of 1.0 annually as
An economist has predicted that the probability of a rise : question 1. the weekly earnings of fast-food restaurant employees are normally distributed with a mean of 395. if only
If a mutual fund consists of an initial nav of 20 at the : if a mutual fund has an initial nav of 20 at the start of the month makes income distribution of 0.15 and capital gain
A small stock brokerage firm wants to determine the average : 1 .the weight of a .5 cubic yard bag of landscape mulch is uniformly distributed over the interval from 38.5 to 41.5
Assume that the price goes down to 70 are you making money : suppose a stock is trading at 100 per share. you ask your broker to sell short 1000 shares. assume your broker has a 50
Find the present value of tuition payments if the interest : your oldest daughter is about to start kindergarten at a private school. tuition is 10000 per year payable at

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd