A portfolio consisting of four stocks is expected to produce returns of minus9%, 11%, 13% and 17%, respectively, over the next f
our years. What is the standard deviation of these expected returns?
1 answer:
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Answer:
The value of q that maximize the profit is q=200 units
Step-by-step explanation:
we know that
The profit is equal to the revenue minus the cost
we have
---> the revenue
---> the cost
The profit P(q) is equal to
substitute the given values
This is a vertical parabola open downward (because the leading coefficient is negative)
The vertex represent a maximum
The x-coordinate of the vertex represent the value of q that maximize the profit
The y-coordinate of the vertex represent the maximum profit
using a graphing tool
Graph the quadratic equation
The vertex is the point (200,-120)
see the attached figure
therefore
The value of q that maximize the profit is q=200 units
Answer:
a. 52%
b. 40%
Step-by-step explanation:
Let A represents the event of raining on Monday and B represents the event of raining in Tuesday,
Then according to the question,
P(A) = 20% = 0.2,
P(B) = 40% = 0.4,
Here, A and B are independent events,
So, P(A∩B) = P(A) × P(B),
⇒ P(A∩B) = 0.2 × 0.4 = 0.08
We know that,
P(A∪B) = P(A) + P(B) - P(A∩B)
a. The probability it rains on Monday or Tuesday, P(A∪B) = 0.2 + 0.4 - 0.08
= 0.52
= 52%
b. The conditional probability it rains on Tuesday given that it rained on Monday,