Calculate the expected value of each investment

Assignment Help Macroeconomics
Reference no: EM13178960

An investor has two investment opportunities each involving an outlay of $10,000. The present value of possible outcomes and their respective probabilities are

(a) calculate the expected value of each investment.

(b) draw a bar chart for each investment.

(c) calculate the standard deviation of each project.

(d) Determine which of the two investments the investor should choose.

Reference no: EM13178960

Questions Cloud

Curve of enclosed mass versus radius : What aspect of the curve of enclosed mass versus radius suggests that there is a large mass of small radius- a black hole, Sagittario- at the Galactic center?
What is the top speed of the train : You solution must contain all work necessary to solve the problem. In addition, you must include complete explanation of your reasoning and the explanations of the steps you took toward the solution.
Verify stokes theorem : Verify stokes theorem
Carbon dating on living clams instead of getting a zero age : If one were to perform carbon dating on living clams instead of getting a zero age ( they are in fact living) one would get an age of approximately 400 years old for these living clams.
Calculate the expected value of each investment : An investor has two investment opportunities each involving an outlay of $10,000. The present value of possible outcomes and their respective probabilities are (a) calculate the expected value of each investment. (b) draw a bar chart for each in..
Find the average value of the function : Find the average value of the function f(x) = cos^3x on the interval 0
Find the total force on the gate : A dam with a vertical face has a gate that is in the shape of an isosceles triangle 3 ft wide at the top and 2 ft high. The upper edge of the gate is 10 ft below surface of the water. Find the total force on the gate due to water pressure. Water w..
Understanding the underlying economics of an industry : Understanding the underlying economics of an industry and their relationship to average profits.  Understanding the relationship between different stages of the value chain in this particular industry.
State a fertilizer manufacturer contains ammonia : A 25.688 g sample of aqueous waste leaving a fertilizer manufacturer contains ammonia.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Find out one story about the economy

Find out one story about the economy that has been in the news lately.

  Calculate level of fuel consumption per hour

A truck powered by a diesel engine working at a 100 percent load factor is operated at a mine. If fuel consumption for this truck is 0.3 l/kW

  Find the total amount of cash reserves

Suppose the public in Nealland does not hold any cash. All commercial banks, however, hold 5 percent of their checking deposits as excess reserves, regardless of the interest rate.

  As per international political economics theory

As per international political economics theory as a central part, I need to identify problems with organizing the international currency system.

  Illustrate what did classical economists

Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.

  Draw a money demand and money supply diagram

Re-draw a money demand and money supply diagram showing the initial conditions and label as point A and

  Illustrate what is the tolal accounting cost

Illustrate what is the tolal accounting cost. Illustrate what is the total economic cost. Elucidate why these are different in this way.

  Compute the expected utility of each project

Compute the expected utility of each project and identify the preferred project according to this criterion.

  As per much of the rest of the world remained characterized

As per much of the rest of the world remained characterized by low rates of economic growth.

  Impact of increase in price of one good

Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say

  Glassware violated which of the subsiquent provision

Glassware violated which of the subsiquent provision(s) of the Clayton Act and Robinson-Patman Act.

  What is the probability that a person has blue eyes

What would you expect to be the value P(having the trait and blue eyes) if eye color and trait status were independent? C. Which of the following expressions describes the relation- ship between the events A = a person has brown eyes and B = ..

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