Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1. an investor puts $2,000 into an investment that

1. An investor puts $2,000 into an investment that will pay $2,500 one-fourth of the time;...

80.2K

Verified Solution

Question

Finance

1. An investor puts $2,000 into an investment that will pay$2,500 one-fourth of the time; $2,000 one-half of the time, and$1,750 the rest of the time. What is the investor's expectedreturn?

2. An investment will pay $2000 a quarter of the time; $1,600half of the time and $1,400 a quarter of the time. The standarddeviation of this asset is:

3. Investment A pays $1,200 half of the time and $800 half ofthe time. Investment B pays $1,400 half of the time and $600 halfof the time. Which of the following statements is correct?

a. Investment A and B have the same expected value, but A has agreater risk

b. Investment B has a higher expected value than A, but alsogreater risk.

c. Investment A has a greater expected value than B, but B hasless risk.

d. None of the statements are correct.

Answer & Explanation Solved by verified expert
4.3 Ratings (547 Votes)
Explanation for part 3 Mean of the return gives the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

12 x 4y 4 5x 4y 12 10

Algebra
Q

The enzyme involved primarily in polymerzation of new DNA strand core replication enzyme OA DNA...

Biology
Q

Consider a cylindrical region of uniform but time varying magnetic field Now conside a plane...

Physics
Q

Find all solutions of the given equation Enter your answers as a comma separated list...

Geometry
Q

In certain situations, it is necessary to weighthe benefit of pursuing a certain goal againstthe...

Basic Math
Q

The values of a period 2x function f t in one full period are given...

Algebra
Q

Question 1 Choice of accounting principles may have significant economic...

Accounting
Q

Cullumber Company had 100 units in beginning inventory at a total cost of $10,000. The...

Accounting
Q

Gold Star Rice, Ltd. of Thailand exports That rice throughout Asia. The company grows three...

Accounting
Q

During 2019, Patrick Smith, who is 16 years old, receives non-eligible dividends of $15,000 from...

Accounting
Q

For the coming year, Cleves Company anticipates a unit selling price of $78, a unit...

Accounting
Q

Designer Architects had the following additional information at its Nowember 30, 2023, year-end: a. The...

Accounting