Find the mean & the standard deviation of the total amount

Reference no: EM1319814

Question: An investor puts USD 10,000 into each of four stocks, labeled A, B, C & D. The following are the means & the standard deviations of the annual returns of these four stocks. Assuming that the returns of these four stocks are independent of each other, compute the mean & the standard deviation of the total amount that this investor in 1 year from these four investments.

Stock	Mean annual return	Stdev. of annual return
A	0.13	0.04
B	0.16	0.06
C	0.12	0.02
D	0.15	0.05

Reference no: EM1319814

Questions Cloud

Confidence interval for the mean test score : Confidence interval for the mean test score.

P value approach to hypothesis testing : Either use the p-value approach to hypothesis testing or use the significance level approach with α = .05.

Find the probability of an alarm : Find the probability of an alarm.

Find the probability that the strike vote is rejected : A union strike vote is scheduled for tomorrow, and it looks close. You expect 100 people to vote, and the probability that a typical individual will vote to strike is estimated to be 0.4. Suppose that the voters make their decisions independent from ..

Find the mean & the standard deviation of the total amount : Compute the mean & the standard deviation of the total amount that this investor in 1 year from these four investments.

Find the probability of observing : Find the probability of observing

The strategy that maximizes the campus bookstore earnings : The strategy that maximizes the campus bookstore earnings.

Test hypothesis for variance : Test hypothesis for variance.

Test the hypothesis for single proportion : Test the hypothesis for single proportion.

Reviews

Write a Review

Required(*) Message

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!

Submit Assignment

User Account

All Pages