Find standard deviation of distribution of each investment

Assignment Help Macroeconomics

Reference no: EM13179449

An individual has to choose between investment A and investment B. The individual estimates that income and probability of the income from each investment are given in the following table (a) Using Excel's statistical tools, calculate the standard deviation of the distribution of each investment. (b) Which of the two investments is more risky? (c) Which investment should the individual choose?

Investment A Investment B

Income Probability Income Probability

$4,000 0.4 $4,000 0.3

5,000 0.3 6,000 0.4

6,000 0.3 8,000 0.3

7,000 0.2

Reference no: EM13179449

Questions Cloud

Compute the molar mass of the compound : The freezing point of pure benzene is 5.48 degrees Celcius, and Kf for benzene is 5.12 degrees C/m. Calculate the molar mass of the unknown compound.

State exactly one-half of the magnesium ions : Exactly one-half of the magnesium ions are Mg-28, a beta emitter with a half-life of 21 hours. What is the decay rate of Mg-28 in the solution after 5.50 days? (Assume a density of 1.02 g/mL for the solution)

How much cloth and food will the economy produce : How much cloth and food will the economy produce after this increase in its capital supply? F. Describe how the allocation of machine-hours and work-hours between the cloth and food sectors changes. Do those changes confirm with the changes descri..

Define a has greater molar mass then substance b : Substance A has a greater molar mass then substance B. Both are nonelectrolytes. If 50 g of substance A are dissolved in 250 g of water in one beaker

Find standard deviation of distribution of each investment : An individual has to choose between investment A and investment B. The individual estimates that income and probability of the income from each investment are given in the following table (a) Using Excel's statistical tools, calculate the standard..

State speed of light in the cable is the same as in a vacuum : How long will it take for a signal to travel that distance assuming that the speed of light in the cable is the same as in a vacuum?

Compute the molar solubility of caf2 : Calculate the molar solubility of CaF2 at 25C in a solution that is (a) 0.010M Ca(NO3)2 and (b) 0.010M NaF

Explain the characteristic infrared absorption frequencies : Describe the characteristic infrared absorption frequencies that would allow you to distinguish between the following pairs of compounds.

Is this individual risk averse-risk neutral or risk seeki : An individual is considering two investment projects. Project A will return a zero profit if condition are poor, a profit of $4 if conditions are good, and a profit of $8 if conditions are excellent. Project B will return of $2 if conditions are p..

User Account

All Pages