Expected rate of return and risk - B.J. Gautney enterprises is evaluating a security. One year treasury bills are currently paying 4.3 %. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security?
Probability/ return: 0.20/ -4%; 0.50/ 4%; 0.10/ 7%; 0.20/ 8%.
The investment's expected return is _% (round the two decimal places)
The investment's standard deviation is % (round the two decimal places)
Should Gautney invest in this security? (select the best choice below)
a) yes. B.J. Gautney Enterprices should invest in this investment because the return is lower than treasury bill and the level of risk higher than the treasury bill.
B) no. B.J. Gautney Enterprises should not invest in this investment because the return is lower than the treasury bill and the level of risk higher than the treasury bill.

Answers

Answer 1

Answer:

Step-by-step explanation:

[tex]\text{Investment's Expected Return} = (0.20 \times -0.04) + (0.50 \times 0.04) + (0.10 \times 0.07) + (0.20 \times 0.08) \\ \\ = (-0.008)+(0.02)+(0.007) + (0.016) \\ \\ \text{= 0.035}\\ \\ = 3.50\%}[/tex]

[tex]Var (r) = [(-0.04- 0.035)^2 * 0.2] + [(0.04 - 0.035)^2 * 0.5] + [(0.07 - 0.035)^2 * -0.10] + [(0.08 - 0.035)^2 * 0.20] \\ \\ = (-5*10^{-6} )+(1.25*10^{-5})+(-1.225*10^{-4}) + (4.05 \times 10^{-4}) \\ \\= 0.001665[/tex]

[tex]SD= \sqrt{Var} = \sqrt{0.001665}= 0.0408 \\ \\ =\mathbf{0.04 \ to \ 2 \ d.p}[/tex]

[tex]\text{B) no. B.J. Gautney Enterprises should not invest in this investment because the} \\ \\ \text{return is lower than the treasury bill and the level of risk higher than the treasury bill.}[/tex]


Related Questions

Two cards are drawn without replacement from a standard deck of 5252 playing cards. What is the probability of choosing a heart and then, without replacement, a spade? Express your answer as a fraction or a decimal number rounded to four decimal places

Answers

Answer:

[tex]\frac{13}{204}[/tex] ≈ 0.0637

Step-by-step explanation:

Given: Two cards are drawn without replacement from a standard deck of 52 playing cards.

To find: probability of choosing a heart and then, without replacement, a spade

Solution:

Probability refers to chance of occurrence of any event.

Probability = Number of favorable outcomes ÷ Total number of outcomes

Total number of cards = 52

Number of hearts = 13

So,

probability of choosing a heart = [tex]\frac{13}{52}=\frac{1}{4}[/tex]

Number of remaining cards = [tex]52-1=51[/tex]

Number of spades = 13

Probability of choosing a spade = [tex]\frac{13}{51}[/tex]

Events consisting of choosing a heart and spade are independent.

So,

Probability of choosing a heart and then, without replacement, a spade =

Probability of choosing a heart × Probability of choosing a spade

= [tex]\frac{1}{4}(\frac{13}{51})=\frac{13}{204}[/tex] ≈ 0.0637

Can y’all help me on a question 15?!

Answers

i think it would be D

HURRY IM TIMED
WILL GIVE BRAINLIEST FOR RIGHT ANSWER

Which equation can be used to find 55 percent of 900?

[tex] \frac{55 \times 1}{900 \times 1} = \frac{55}{900} \\ \\ \frac{100 \times 16.36}{55 \times 16.36} = \frac{1636}{899.8} \\ \\ \frac{900 \times 9}{100 \times 9} = \frac{8100}{900} \\ \\ \frac{55 \times 9}{100 \times 9} = \frac{495}{900} [/tex]

Answers

Answer: The last one

Just find it regularly by multiplying .55 by 900 to get the answer then choose the one that will give said answer.

Also eliminate the ones that are over 100% like the 2nd and 3rd one

Since its over 50% we know 55 isnt 1/2 of 900.

3 2/5 + 4 2/7 = _________

2 5/8 + 6 1/6 = _________

4 8/10 + 5 2/6 =________

6 7/12 + 3 19/14 = _______

Answers

200068936630202002020202920202020030393837464647748393202929838383747564637820201928373764

A dinner plate has a diameter of 11 inches. What is the area?

Answers

Answer: Area of a circle= πr²

Data:

diameter=11 in

ratius=diameter/2=11 in/2=5.5 in

Area of this circular plate=π(5.5 in)²=30.25π in²=30.25 * 3.141592... in²≈

≈95.0 in².

answer :  c  95.0 in²

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results.

Sample Service Life (hours)
1 495 500 505 500
2 525 515 505 515
3 470 480 460 470

1. What is the sample mean service life for sample 2?

a. 460 hours
b. 495 hours
c. 515 hours
d. 525 hours

2. What is the mean of the sampling distribution of sample means for whenever service life is in control?

a. 250 hours
b. 470 hours
c. 495 hours
d. 500 hours
e. 515 hours

Answers

Answer:

1. c. 515 hours

2.  c. 495 hours

Step-by-step explanation:

Sample mean:

Sum of all values in the sample divided by the number of values.

1. What is the sample mean service life for sample 2?

Sample 2 has four values, which are:

525 515 505 515

So

[tex]M = \frac{525+515+505+515}{4} = 515[/tex]

The answer is given by option C.

2. What is the mean of the sampling distribution of sample means for whenever service life is in control?

3 samples, 12 total values. We find the mean of all these values. So

[tex]M = \frac{495+500+505+500+525+515+505+515+470+480+460+470}{12} = 495[/tex]

The answer is given by option C.

16.
C с
6.1 cm
А
B
120°
3.5 cm
o
Fig. 4.77 Circle
For the figure above:
(a) Calculate the area of the circle, centre 0.
(b) Calculate the area of the minor sector
АОВС.
(c) Calculate the area of the triangle AOB.
(d) Determine the area of the segment ABC
22
7

Answers

needs to be clear makes no sense at alll

d determine the are of the segment ABC 22 7

Monica bought a new house and she is looking to get cable and wifi. She is looking for reasonable prices. Monica is trying to compare two different companies. Comcast is charging $60 per month and $4 for any extra channels. On the other hand, Verizon is charging $45 per month and $6 for any extra channels.

=4+60

=6+45

PLEASE HELP ASAP

Answers

Answer:

I think she should get the Verizon house hold Wifi because when you compare the prices even if Monica doesn't want any extra channels she would still save $15. Even tho the extra channel was $4 for the Comcast when you add it up you get $64 instead when you use Verizon even tho you pay $6 for extra channels you still don't get the amount for the Comcast which you save $13 by getting Verizon with $51.  

Step-by-step explanation:

Are congruent triangles also similar?

Answers

Answer: yes they are

Step-by-step explanation:

If two pairs of corresponding angles in a pair of triangles are congruent, then the triangles are similar. We know this because if two angle pairs are the same, then the third pair must also be equal.

Answer:

Yes

Step-by-step explanation:

While congruent triangles are similar, similar triangles may not be congruent.

pentru triunghiurile congruente ijk si lmn sau scris cate trei congruente ale elementelor acestora scrie congruentele lipsa

Answers

i am just doing this so I can get more answers

Step-by-step explanation:

Which of the following modifications to an electromagnet would be most likely to
decrease the strength of its magnetic field?

Answers

Answer:

Fewer coils, lower voltage, alloyed core with less iron

Step-by-step explanation:

PLS EXPLAIN HOW U GOT THE ANSWER

Sara needs to cover the top and sides of the cylinder below

diameter 6 in.
height 8 in.

About how many square inches of paper will Sara need?
O 528 in.
O 415 in.
O 207 in.
O 179 in.

Answers

415 in

take 8 times 6 four times and add them together

At burns high school 3/5 of the students are females of the female students 1/3 of them play volleyball what fraction of the students in burn high school are girls that play volleyball

Answers

3/5 of  1/3 means 3/5 x 1/3

[tex]\frac{3}{5} \times \frac{1}{3} = \frac{3}{15}[/tex]

3/15 simplifies to 1/5

So 1/5 of the students in the high school are girls who play volleyball

Help plzshsvddvdvvdb

Answers

9514 1404 393

Answer:

  12 days

Step-by-step explanation:

The time is found by dividing the quantity by the rate of usage.

  (3 gal)/(1/4 gal/day) = 3·4 day = 12 day

The tea will last for 12 days.

What is the lowest term of 75/60 as an improper fraction?

Answers

75/60 = 15/12 = 5/4. This is the lowest term

Answer:

The lowest term 75/60 as an improper fraction is 5/4.

Can y’all help me on question 34?!

Answers

Answer:

c) step 3

Step-by-step explanation:

7 (y - 10) + 8 - 6 (3 + 1)

y = 13

substitute 13 for y

7 (13 - 10) + 8 - 6 (3 + 1)

solve inside the brackets:

7 (3) + 8 - 6 (4)

multiply:

21 + 8 - 24

solve:

5

simplify by distributive property 9-5b+5m​

Answers

Answer and Step-by-step explanation:

This is as far as the expression can be simplified.

The undistributed version of the expression is:

9 -5(b - m)

#teamtrees #PAW (Plant And Water)

−5b+5m+9 this should be the answer correct me if I’m wrong.

For the quadratic equation f(x) = x2 + 8x + 15, identify the vertex
and one of the zeros

Answers

Answer:

vertex = ( − 4 , − 1 )

Zeros x =  − 3, -5

Step-by-step explanation:

(11a2b+17a-4b2+15)+(12a2b-16b2+3)=

Answers

This is kinda confusing

Answer:

232−202+17+18

Helppp! Is Figure A’B’C’D’ a reflection of Figure ABCD? Explain. *

Answers

Yes. It would be a reflection over the line.

Need help question #3. Show steps please

Answers

Answer:

B.

Step-by-step explanation:

We are given:

[tex]\displaystyle \int \sqrt{x}\Big(9x^3-2\sqrt{x}+\frac{8}{x}\Big)\, dx[/tex]

And we want to select its equivalent form.

Note that A is not valid. No integration property allows us to separate factors unless that factor is a constant.

We can simply rewrite and then distribute. First, by rewriting:

[tex]\displaystyle =\int x^{1/2}\Big(9x^3-2x^{1/2}+8x^{-1}\Big)\, dx[/tex]

Distribute. Recall exponent properties;

[tex]\displaystyle =\int(9x^{3+1/2}-2x^{1/2+1/2}+8x^{-1+1/2})\, dx[/tex]

Simplify:

[tex]\displaystyle=\int9x^{7/2}-2x+8x^{1/2}\, dx[/tex]

This can then be separated (since its addition/subtraction) and integrated individually.

Hence, our answer is B.

Select the measures that are equal to 3 gallons. Mark all that apply.

6 quarts

12 quarts

6 pints

12 pints

24 pints

20 cups

Answers

Answer:

12 quarts 24 pints

Step-by-step explanation:

change all measurements to gallons and solve.

1 quart= 2 pints

1 galllon = 8 pints

Answer:

12 quarts 24 pints

Step-by-step explanation:

change all measurements to gallons and solve.

1 quart= 2 pints

1 gallon = 8 pints

Please need help thank

Answers

Answer:

1

Step-by-step explanation:

One member in the graph only went one time which is fewer than two times.

How to break down 14 as a prime number

Answers

To get the prime factorization of 14, we divide it by its smallest prime factor which is 2. Now, 14 is divided by the remaining prime factors 3, 5, 7, 11, and 13. 14 is only divisible by 7 and we get the quotient as 2. Thus, 14 has 2 prime factors.

Edit: No they copied me!!!

Question 7
(04.03 MC)

The graph below shows the price of different numbers of swim bags at a store:

A graph is shown. The values on the x axis are 0, 2, 4, 6, 8, 10. The values on the y axis are 0, 15, 30, 45, 60, and 75. Points are shown on ordered pairs 0, 0 and 2, 15 and 4, 30 and 6, 45 and 8, 60. These points are connected by a line. The label on the x axis is Number of Bags. The title on the y axis is Price in dollars.

Which equation can be used to determine p, the cost of b swim bags? (5 points)

a
p = 7.50 + b

b
b = 7.50 + p

c
p = 7.50b

d
b = 7.50p

Answers

Answer:

IT's p=7.50b

Step-by-step explanation:

i took a test with this question

The work of a student to solve a set of equations is shown: Equation A: y = 4 − 2z Equation B: 4y = 2 − 4z Step 1: −4(y) = −4(4 − 2z) [Equation A is multiplied by −4.] 4y = 2 − 4z [Equation B] Step 2: −4y = 4 − 2z [Equation A in Step 1 is simplified.] 4y = 2 − 4z [Equation B] Step 3: 0 = 6 − 6z [Equations in Step 2 are added.] Step 4: 6z = 6 Step 5: z = 1 In which step did the student first make an error? (5 points)​

Answers

Answer:

The student made the first mistake in step 2.

Step-by-step explanation:

The work of a student to solve a set of equations first make an error in step 2 .

What is elimination method?

The elimination method is the process of eliminating one of the variables in the system of linear equations using the addition or subtraction methods in conjunction with multiplication or division of coefficients of the variables.

According to the question

Equation A: y = 4 − 2z

Equation B: 4y = 2 − 4z

Solving equation by elimination method

Step 1:

[Equation A is multiplied by −4.]

−4(y) = −4(4 − 2z)  

Equation B: 4y = 2 − 4z  

Step2:

[Equation A in Step 1 is simplified.]

-4y = -16 + 8z

Equation B: 4y = 2 − 4z

Step 3:

Both equation A and B is added

-4y = -16 + 8z

 4y = 2 − 4z  

=> 0 = -14 + 4z  

Step 4:

4z = 14

z = 3.5  

Hence, the work of a student to solve a set of equations first make an error in step 2 .

To know more about elimination method here:

https://brainly.com/question/14619835

#SPJ2

Zoom in for a better look BUT HELP PLS ITS MY FINALS! I RLLY NEED HELP

Answers

Answer:

C.

Step-by-step explanation:

The word biodiversity means the variety of life and in this case, bats

Ecosystem 1 has the most variety bc it has the most number of different varieties of bats observed

hope this helps <3

I need help with this

Answers

Answer:

1/5

Step-by-step explanation:

because u divied

A large hotel has five elevators. On any given day, there is an 8% chance that one elevator is broken The operate independently of one another. The Robertsons are staying in this hotel for five days. Let X represe number of days one elevator is broken during their stay What are the mean and standard deviation of X? W,-0.4.5, -0.074 W, 0.4.0, 0.61 , -2.5, 0, -1.92 O w.-4.0, 0.89​

Answers

Answer:

0.4, 0.61

Step-by-step explanation:

The mean and standard deviation of X is 0.4.0, 0.61. The correct option is B.

What is standard deviation and mean?

A standard deviation (or ) is a measurement of the degree of dispersion of the data from the mean. A low standard deviation implies that the data are grouped around the mean, whereas a large standard deviation shows that the data are more dispersed.

The average degree of variability in your data set is represented by the standard deviation. It reveals the average deviation of each score from the mean.

The average of a group of variables is referred to as the mean in mathematics and statistics. There are several methods for calculating the mean, including simple arithmetic means (adding the numbers together and dividing the result by the number of observations), geometric means, and harmonic means.

Mean = sum of terms/number of terms

Therefore, the correct option is B, 0.4.0, 0.61.

To learn more about standard deviation, refer to the link:

https://brainly.com/question/23907081

#SPJ2

Find the area of the shaded polygons

Answers

Answer:

8

Step-by-step explanation:

you can find matches that make 1 and add them all up

Answer:

8 because of rsm

Step-by-step explanation:

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