Loss = $0 with probability .6
Loss = $20 with probability .4
Find the expected loss and standard deviation for the distribution
Stacey and Tracey have the same loss distribution: Loss = $0 with probability .6 Loss =...
20. You have been given this probability distribution for the return of Apple (AAPL). Probability Rate of Return 0.5 30% 0.5 10% a. What are the expected return and the standard deviation of AAPL? (7 points) b. Suppose the expected return and standard deviation of Amazon (AMZN) is 10% and 5%. The correlation between AAPL and AMZN is 0.71. And the optimal risky portfolio, P*, comprising of AAPL and AMZN, is investing 50% in each. What is the optimal risky...
6. Given the probability distribution below, find Mean and Standard deviation. х P(x) 0 0.10 10 0.50 20 0.05 30 0.35 Total 1.00 I
A normal probability distribution a. has a standard deviation of 0. O b. must have a standard deviation of 1 and a mean of 0. c. needs to have a mean of 0. d. can have mean of any numerical value.
QUESTION 6 Why is the following not a probability distribution? co to ox P(x) 0.11 0.19 0.43 0.17 0.25 The values of x are negative 4 The probability values are not increasing The probability values do not add to 1 The probability values are not discrete 1) The following questions will be about the contingency table below. The table identifies a group of children by one of the four hair colors, and by type of hair. Blonde Black Red 1...
7. A carnival game costs $6 to play. The probability of winning is 0.25 and the prize is $30. Let x be the gain or loss of the player each time the game is played. Find the expected value or mean value of x. 8. Find the standard deviation of the following discrete probability distribution. A=0.1 x P(x) 0 A 1 0.4 2 1-A 9. A bag contains 1 green marble and 3 red marbles. 3 times a marble is...
4. (2.5 Points) The probability distribution of loss due to a fire damage to a warehouse is as follows: Amount of Loss (in $) 0 500 Probability 0.80 0.10 1,000 10,000 50,000 0.05 0.04 0.01 Given that a loss is greater than $0, find the cumulative distribution function of the loss.
6b) Use the probability distribution above in order to find the STANDARD DEVIATION. 7) A contest entrant ha a 0.0008 probability of winning a prize of $11,278. If this is the only prize and the entry fee is $35, then find the expected value of winning the contest. 8a) Suppose that the probability that a person will develop hypertension over a lifetime is 20%. If fifteen graduating students from the same college are...
Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 18% 0.4 9 7 0.3 20 11 Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. % Calculate the standard deviation for the market. Round your answer to two decimal places. % Calculate the standard deviation for...
letter b please You have estimated the following probability distribution of returns for two stocks: Stock N Stock O Probability 0.20 0.30 Return 8% Probability 0.20 0.30 0.30 Return 26% 12 0.30 0.20 -4 0.20 -4 Calculate the expected rate of return and standard deviation for cach stock If the correlation between the returns on the two stocks is -0.40, calculate the portfolio returm and the standard deviation for portfolios containing 100%, 75 % , 50 % , 25 %...
PLEASE SHOW EXPLANATION, WORK, AND EQUATIONS 6. Stock A has the following probability distribution of expected returns. What is Stock A's expected rate of return and standard deviation? Probability Rate of Return -12% 0.1 0.2 0.4 0.2 0.1 0 5 8 22