In which investment would the element of risk be less

Assignment Help Mathematics
Reference no: EM131559480

Question: INVESTMENT ANALYSIS Rosa Walters is considering investing $10,000 in two mutual funds. The anticipated returns from price appreciation and dividends (in hundreds of dollars) are described by the following probability distributions:

277_51.png

154_52.png

a. Compute the mean and variance associated with the returns for each mutual fund.

b. Which investment would provide Rosa with the higher expected return (the greater mean)?

c. In which investment would the element of risk be less (that is, which probability distribution has the smaller variance)?

Reference no: EM131559480

Questions Cloud

Describe the role cryptography plays in information security : Write a two-page paper describing the role cryptography plays in Information Security, how it accomplishes this, and why it is important.
List the options used with the tcpdump command : 1. What is the command required to identify which flags are currently set for each interface:
Compute the mean and variance for each venture : INVESTMENT ANALYSIS Paul Hunt is considering two business ventures. The anticipated returns (in thousands of dollars) of each venture are described.
Give a detailed example of a real life situation : Give a detailed example of a real life situation in which there are different objects of which order does matter.
In which investment would the element of risk be less : INVESTMENT ANALYSIS Rosa Walters is considering investing $10,000 in two mutual funds. The anticipated returns from price appreciation and dividends.
Which power supply you would purchase and why : Which power supply you would purchase? Why? The URL should go to the part on the vendor site and not to the high level site domain.
Find the accounting rate of return : The Jason Company is considering the purchase of a machine that will increase revenues by $32,000 each year. For this machine, the accounting rate of return is
Find the the amount of net cash flows : Assume net income was $100,000, depreciation expense was $8,000, The amount of net cash flows from operating activities is
Unauthorized network access can be justified : Are there any circumstances when unauthorized network access can be justified? Be specific.

Reviews

Write a Review

Mathematics Questions & Answers

  Splitting field proofs

Let K1 and K2 be finite extensions of F contained in the field K, and assume both are splitting fields over F. Prove that their composite K1K2 is splitting field over F.

  Find the velocity of the rock after two seconds

If a rock is thrown upward on the planet Mars with a velocity of 19 m/s, its height (in meters) after t seconds is given by H = 19t - 1.86t2.

  What if the three flavors have to be different

Four teams are attending a local Ultimate Frisbee meet. If each team plays each other team exactly once, how many games are played?

  How probabilities are used by meteorologists

Illustrate how compound probabilities can be used to predict the weather.

  At what rate is his distance from second base

a baseball diamond is a square 90 feet on each side. a player is running from home to first base at a rate of 15 feet per second. at what rate is his distance from second base changing when he has run halfway to first base?

  Plan for the distribution of salary increases

Develop a plan for the distribution of salary increases. Suppose you are employed in a local industry, and your supervisor has assigned you to distribute annual raises that must average 4% per department among 6 team members.

  Algebra-linear equations and inequalities

The surface area S of a right prism is given by S = 2B + Ph. The length of a rectangle is five times its width. If the area of the rectangle is 500m², find its perimeter.

  A ladder that is 30 m long is leaning against a wall at an

a ladder that is 3.0 m long is leaning against a wall at an angle of 66.0 o with respect to the ground. if the base of

  Determine the derivative of the function

Using the definition of the derivative, determine the derivative of the function f(x) = √(2x + 1), at x = 1. Suppose we know that f(x) is differentiable at x = a. For each of the following, determine if the statement is true or false. If true, expl..

  Develop a prediction equation

Develop a prediction equation

  What is the rejection region

A business journal investigation of the performance and timing of corporate acquisitions discovered that in a random sample of 2,963 firms, 610 announced one or more acquisitions during the year 2000.

  Real-life math example

You decide to start your article with a math example that the readers can understand. Describe a real world situation that could be modeled by a function that is increasing, then constant, then decreasing.

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