In the given case, expected loss would be (0*0.4)+(500*0.2)+(1000*0.4)= 500
(Value - expected value)^2 for the given 3 values in order would be
(-500)^2= 250000
0^2= 0
(500)^2= 250000
These values multiplied with probability would be
100000
0
100000
Adding the 3 values up, variance would be 200000
SD would be square of variance which would be 447.21.
Potential Loss Probability S 500 $1,000 0.40 ().20 0.40 There is a PDF file attached that...
b) The wind speed follows the probability density function (pdf) shown in Figure Q5b below 15 10 20 V (m/s) Figure Q5b i) Calculate the value of k for this to be a legitimate pdf, i) Calculate the average specific wind power under the standard condition.
b) The wind speed follows the probability density function (pdf) shown in Figure Q5b below 15 10 20 V (m/s) Figure Q5b i) Calculate the value of k for this to be a legitimate...
edonia CNC * Assignment MATH 342 Biostatistics File C/Users/kaurm58/Downloads/Math%20157%20-%20Assignment%202%20.pdf Assignment 2 Question 3 Roth is a computer-consulting firm. The number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below. Probability Number of New Clients 0 2 0.05 0.10 0.15 0.30 0.25 0.10 0.05 a. Calculate the expected value of X b. Calculate the variance standard deviation of Question 4 At Stephenson...
a probability density function (pdf) of wind speed, y, pl)that is flat from 0 mis to a cutof velocity ve m/s, Pr(v)-( and turbine power, P, as a function of the random variable v of the form 2 where n is the turbine efficiency and v, is the rated velocity such that 2 For the following, assume vc-20 m/s, η-04, ρ 122 kg/m3, A-4x104 m? and v-20 m/s-ve- (a) Calculate the mean value of the random variable defined by this...
Problem 6-20 Refer the table below on the average risk premium of the S&P 500 over T-bills and the standard deviation of that risk premium Suppose that the S&P 500 is your risky portfolio Sharpe Period 1926-2015 1992-2015 1970-1991 1948-1969 1926-1947 Average Annual Returns S&P 500 1-Month Portfolio T-Bills T 11.77 3.47 110.79 2.66 12.87 14.14 2.70 9.25 8.91 Risk Premium 8.30 8.13 5.33 11.44 S&P 500 Portfolio Standard Deviation 20.59 18.29 18.20 17.67 27.99 0.40 0.44 0.29 0.3e o....
The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $8.20. Assume the stock prices are normally distributed. What is the probability a company will have a stock price of at least $40? (Round to four decimal places) What is the probability a company will have a stock price no higher than $20? (Round to four decimal places) How high does a stock price have to be to put a company in...
2(c),(d)
Assignment PT (1),pdf Adobe Acrobat Pro File Edit View Window Help Customize Open Create Fill & Sign 2 2 Tools 99.1% Comment Question 2 (10 Marks) Components are selected from three machines A, B, and C to check for its quality. The results are summarized in the table below Defective Not Defective Machine A 30 520 Machine B 20 480 35 765 Machine C From the given information, construct a fully labelled probability tree diagram (a) (b) Given that...
2.The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $8.20. Assume the stock prices are normally distributed. What is the probability a company will have a stock price of at least $40? (Round to four decimal places) What is the probability a company will have a stock price no higher than $20? (Round to four decimal places) How high does a stock price have to be to put a company in...
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12. (10 points) The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $18.20 (Business Week, Special Annual Issue, Spring 2003). Assume the stock prices are normally distributed. (b) What is the probability that a company will have a stock price of at least $40 (to 4 decimals)? (e) What is the probability that a company will have a stock price no higher than $20 (to 4 decimals)?
The average stock price for companies making up the S&P 500 is $30, and the standard deviation is $8.20. Assume the stock prices are normally distributed. What is the probability a company will have a stock price between $30 and $40? How high does a stock price have to be to put a company in the top 10%?
1. Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index...