An investor has two investments a and b

Assignment Help Financial Management
Reference no: EM13979098

1. An investor has two investments A and B. The investor believes that investment A is equally likely to increase by $1,000 or to decrease by $1,000 by the end of the year. The investor also believes that investment B is equally likely to increase by $2,000 or decrease by $2,000 by the end of the year. Let X represents the total amount of change in investments A and B. Assume that these investments perform independent of each other. Find the probability of X.

Reference no: EM13979098

Questions Cloud

Let income be y, and measured in dollars : Let income be Y, and measured in dollars. A doctor obtains utility of4Y1/2 from exerting low effort, and 2Y1/2 from exerting high effort. Her reservation utility is 120utils. Patients and the physician's employers can only observe health outcomes. If..
Do a what if analysis by changing the probability : What is the probability that at least 30 employees out of 80 would be financially secure if they lost their job for 6 months to a year?
What is the standard deviation of the random variable : What is the standard deviation of the random variable? What is the mean of the random variable?
Zero economic profit includes a normal return : Zero economic profit includes a normal return for business owner. However, how do we know that the business owner will be satisfied with zero economic profit? In other words, if a business owner is earning zero economic profit, is there another oppor..
An investor has two investments a and b : An investor has two investments A and B. The investor believes that investment A is equally likely to increase by $1,000 or to decrease by $1,000 by the end of the year.
Do not use pseudo-instructions : You are to complete the program by writing four functions.  Pay particular attention to the purpose of each function, what registers to use and how the parameters and stack are to be used.  If the instructions specify a particular register, then you ..
How did hasting big five model of personality leadership : How did Hasting Big Five model of personality leadership traits change from Pure Software to Netflix? Which leadership styles did Hasting use at Pure Software and Netflix? How effectively were these leadership styles used? Explain how power, organiza..
Given a choice between a command line interface : 1.Given a choice between a command line interface and a GUI, most people prefer the GUI. There are, however, people who prefer the command line interface. Why do you suppose anyone would prefer a command line interface?2. Briefly describe a hierarchi..
Find the expected number of people who arrive before you : a. Find the expected number of people who arrive before you.b. Find the variance of the number of people who arrive before you.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the book value for a share of casper stock

Casper Energy Exploration reports that the corporation's assets are valued at $188042000, its liabilities are $74973000, and it has issued 7205000 shares of stock. What is the book value for a share of Casper stock?

  Vast resources available to mutual fund managers

Given the vast resources available to mutual fund managers, these managers on average have generally:

  What is the value of a put option with a strike price

An investor bought 400 shares of stock when its price was $40/share. The price of the stock is now up to $75/share and the investor decides to hedge his position by purchasing 4 puts (premium = $7.50, exercise price of 75). What is the value of a put..

  What would the total present value of the bond be

If a group has just issued a $100,000 par value bond paying 6% interest with 8 years til maturity. Assuming the current yield on the bond is 10%, what would the total present value of the bond be? How this would be solved

  What is the bonds nominal coupon interest rate

Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semi annually, and they sell at a price of $950. What is the bond's nominal coupon interest rate?

  What is expected dividend in each of the next three years

Integrated Potato Chips paid a $2.40 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 6% per year. a. What is the expected dividend in each of the next 3 years?

  Management accounting advice to not-for-profit firms

Cray-Z Consultants provides management accounting advice to not-for-profit firms. It employs three levels of consultants, based on experience and education: partner, senior, and associate. When Cray-Z considers bidding on jobs, it estimates the costs..

  Rate of return for Firm implied by the current market price

The ABC Company currently has $16,000,000 in physical assets that have always generated a steady stream of earnings for the company. The management of the firm has always paid all of its earnings to shareholders as a dividend. What is the required ra..

  Discuss impact that medicaid cuts will have on krona revenue

Discuss the impact that the Medicaid cuts will have on Krona's revenue. Address the possible issues surrounding next year's forecasting. Provide an explanation of capitation.

  How many months will it take you to pay off this balance

You decide to pay off your current credit card balance of $12,000 by paying $400 every month. You will add no new spending on the card. You are being charged 18% APR, compounded monthly, on the unpaid balance.  How many months will it take you to pay..

  What is the company WACC

You are given the following information for Watson Power Co. Assume the company’s tax rate is 30 percent. Debt: 9,000 6.4 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 107 percent of par; the bonds make semiann..

  Take any information from internet and use it

Hey last time you did a good job but i lost 9 marks this time do it perfect so i don't loose points and don't take any information from internet.

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