User Account

All Pages

When you use the binomial distribution in way

Assignment Help Business Economics
Reference no: EM132147136

It has been a bad day for the stock market and you have heard that only 30% of all stocks gained value. Suppose you have a portfolio of 10 securities and assume a binomial distribution for the number of your stocks that gained value.

(a) What assumptions are being made when you use the binomial distribution in this way?

(b) Find the expectation and standard deviation of the number of securities in your portfolio that gained value.

(c) What is the probability that six or fewer securities in your portfolio gained value?

(d) Find the probability that exactly six securities in your portfolio gained value.

(e) What is the probability that at least one of your securities gained value?

Reference no: EM132147136

Questions Cloud

Compute the local tuncation error for the scheme : Compute the Local Tuncation Error for the scheme and judge if the scheme is consistent. Based on the eigenvalue calculation, judge if the scheme is zero-stable
Critique the six pillars of united states policing : Critique the six pillars of United States policing and how they are demonstrated within the concept of procedural justice.
What percent of males are taller than 70 : Adult male heights X have N(70", 3.3") a.) What percent of adult males are shorter than 63"? b.) What percent of males are taller than 70"?
How many selections contain defective : Eight calculators are chosen at random to be sent to a local high school. How many selections contain 3 defective?
When you use the binomial distribution in way : (a) What assumptions are being made when you use the binomial distribution in this way?
How would you typically dispose of a broken smart phone : How would you typically dispose of a broken smart phone? Does your community have a means of recycling smart phones?
Complete an in-depth profile on the organization : Select a terrorist organization likely to conduct an attack within the United States, and complete an in-depth profile on the organization.
Discuss role of food security as compared to food justice : In a 3 page paper compare and contrast food insecurity issues in urban environments vs. rural environments. Discuss the role of food security as compared.
Define probable cause : Give an example of a strong indication of probable cause to arrest that is arrived at through each of the five senses: sight, hearing, smell, taste, and touch.

Reviews

Write a Review

Business Economics Questions & Answers

  Gas prices dropping after last weeks spike

In an article titled, Gas prices dropping after last week's spike, that was published in The Atlanta Journal-Constitution newspaper on August 29, 2011," After a spike last week as Hurricane Irene threatened East Coast oil refineries, Atlanta gas pric..

  Consider monopoly with production function

Consider a monopoly with a production function given by q = f(x) = √x and a fixed cost of $1. The input price is $0.50. The monopolist sells her product in a market that has ten consumers. Let p denote the unit price of the good. Find the profit-maxi..

  What is the crowding out effect of budget deficits

What is the "crowding out" effect of budget deficits? What determines whether crowding out leads to a minor or major reduction in the impact of expansionary

  Was anything really memorable about the films

Was the movies examples "Real World" and presented without any particular bias? Was anything really memorable about the films?

  An exchange rate depreciation acts to reduce inflation

At higher interest rates, banks will want to hold more reserves. An increase in the interest rate is associated with an increase in bond prices. Individual banks always respond quickly and significantly to changes in the discount rate. When one curre..

  Compute equilibrium price-equilibrium quantity

Plot the demand and supply curves for this market. Show the equilibrium price, and quantity for electricity. Label consumer surplus, producer surplus, and cost of goods sold on the figure you have drawn. Compute equilibrium price (P*), equilibrium qu..

  Calculate the value of country twos current account

Consider the following information for Country 2: GDP = 1600; Absorption = 1500; Unemployment Rate = 4%; Net UT = (-)150. Calculate the value of Country 2's Current Account (CA). Show all your calculations to obtain full credit. Country 2 is likely t..

  Engineering economy in undergraduate coursework

Barry, an Oklahoma Crude Company engineer who did not take Engineering Economy in his undergraduate coursework, recommended that Oklahoma Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish.  As a..

  In relation to minimum wage

In relation to farm policy -- this is originally intended to help "the family farm". Does it? Discuss. In relation to minimum wage -- based on economic rationale, are you in favor or against in raising the current minimum wage to $10.10 or an even hi..

  Compute the after-tax rate of return

Compute the after-tax rate of return for this investment situation, assuming a 46% incremental tax rate.

  Marginal analysis also optimizing behavior in general

Elucidate why your answer to part (a) is an example of marginal analysis also optimizing behavior in general.

  Role of resources in international trade

Do you believe the rise of globalization has caused the outsourcing of manufacturing jobs within the United States, or is this a natural progression due to the technological era we are in?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd