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

6/15=3/x
HELPP PLEASE

Answers

Answer:

15/2 or 7.5 :)

Step-by-step explanation:

Answer:

Step-by-step explanation:

[tex]\frac{6}{15} = \frac{3}{x}[/tex]

simply cross multiply

[tex]6x = 45[/tex]

divide both sides by 6

[tex]\frac{6x}{6} = \frac{45}{6}[/tex]

hence x will be equal to [tex]7.5[/tex]

Is it required to for it to be in decimals?

Prove that a+b/2≥√ab

Answers

Start by squaring both sides got remove the sqrt
[(a+b)/2]^2 ≥ ab
(a^2 +2ab +b^2 )/4≥ ab
Multiply both sides by 4
a^2 +2ab +b^2 ≥ 4ab
Subtract 2ab from both sides
a^2 + b^2 ≥ 2ab
Subtract 2ab from both sides
a^2 - 2ab + b^2 ≥ 0
Use quadratic equation to solve where a = 1 and b = -2b
2b ± sqrt[(-2b)^2 - (4x1xb^2)]/(2x1)
2b ± sqrt[4b^2 - 4b^2]/2
(2b ± 0)/2
a = b
Substituting for b in the equation a^2 + b^2 ≥ 2ab
2a^2 ≥ 2a^2

Can somebody help me please

Answers

Step-by-step explanation:

First, find complete data.

That would be 2, 12 and 5, 30

Divide the output by the input to get the relationship/constant.

12/2 = 6     30/5 = 6

So...

1 x 6 = 6

and

48 / 6 = 8

9514 1404 393

Answer:

  (b)  Output 6, Input 8

Step-by-step explanation:

One of the things you can look at is the ratio of output to input. Here, it is constant, which makes things a lot easier

  output/input = 12/2 = 30/5 = 66/11 = 6

Then for input 1, output is 1×6 = 6.

For unknown input, we have ...

  input × 6 = 48

  input = 48/6 = 8

__

The two blanks are ...

 input: 8; output 6

Using Postulates and/or Theorems learned in Unit 1, determine whether PRQ MRN.
Show all your work and explain why the triangles are similar or why they are not
Please help and give a good explanation

Answers

Answer:

RM / RP = 10/18 = 5/9

RN/RQ = 7/21 = 1/3

Since the two ratios are not the same, triangle PRQ is not similar to triangle MRN.

Step-by-step explanation:

The triangles PRQ and MRN are not similar.

Similar triangles:

Triangles are similar if their corresponding angles are congruent and the corresponding sides are in proportion.

This means the ratio of there corresponding sides must be equal. The corresponding angles must be the same . Therefore, the following rules must apply:

∠R = ∠R

∠Q = ∠N

∠P = ∠M

The following proportion rule must apply below:

PR / MR = RQ / RN = PQ / MN

18 / 10 = 21 / 7

9 : 5 ≠ 3 : 1

Therefore, the triangles are not similar

learn more on similar triangles here: https://brainly.com/question/10810713

What is the surface area of a cube with an edge length of 8 inches?

384 in.
288 in.
192 in.
512 in.

Answers

The answer would be 384in²

start time: 2:18:09 pm elapsed time: 5 hr 34 min 27 sec end time:??

Answers

Answer:

Start time: 2:18:09 pm

End Time : 7:52:36 pm

Step-by-step explanation:

Plus these numbers

2:18:09

5:34:27

_______

2+5 = 7

18+34 = 52

09+27 = 36

7:52:36

What is the value of n

Answers

Answer: n=10
Explanation: sin(30°)=n/20 multiply 20 to sin(30°) and you get 10

The answers please. Don’t know how to do #1

Answers

Your correct. It is what you put down

Muhammad Amanullah buys 4 apples for $1.12.
At the same price, how many apples can he buy for $2.52?

A-5
B-6
C-7
D-8
E-9

Answers

Answer: E) 9

Step-by-step explanation:

1.12/4 = 0.28

2.52/0.28 = 9

Answer:

9

Step-by-step explanation:

To find how much each apple costs, you have to divide the price by how many apples he brought.

1.12/4 = 0.28

Each apple costs $0.28

Now, you have to divide 2.52 by 0.28.

2.52/0.28 = 9

He can buy 9 apples at the same price with $2.52.

2. Which of these is a combination problem?
How many different ways can a manager review 3 out of 5 employees if he reviews them in a specific order?
In how many different ways can Maria choose 5 roses from a bunch of 10 roses.
How many license plates can be formed with the digits 3, 2, 7, 0?
How many different ways can the letters in the word 'seven' be arranged?

Answers

THAT SHOULD BE THE ANSWER

Ambitious

268 answers

76.4K people helped

This is a fundamental counting principle problem and can be solved by multiplying the number of choices you have for each digit of the license plate.

For the first digit you can choose from the numbers 0,1,2...,9 or 10 choices.

Now the next 5 digits will all be letters all being different.. recall there are 26 letters in the alphabet.. for our second digit we have 26 choices, for our third digit we have 25 choices(because we already used one of the 26 letters and we can't repeat), for our fourth digit we have 24 choices.... and well I'm sure you are catching on by now...

Here is what the whole calculation looks like:

10(26)(25)(24)(23)(22) = 78,936,000

Step-by-step explanation:

Answer:

The answer should be the one with roses

Step-by-step explanation:

List the containers from least to greatest: 1.73, 2.061, 1.59, 2.1

Answers

1.59, 1.73, 2.061, 2.1

-2 x -4 x -1 - -2 x -4

Answers

Answer:

-16

Step-by-step explanation:

(-2 * -4 * -1) - (-2 * -4) **use parenthesis to make easy

Multiply first parenthesis:

= -8

Multiply second parenthesis:

= 8

Combine (subtract):

-8 - 8 = -16

Answer:

-32

Step-by-step explanation:

your required answer is

-2 × -4 × 1 × -4 = -32

Part 2: Identify key features and graph a circle from general form.
Answer the following questions to determine the key features of the circle whose equation is shown
and then graph it.
x2 + y2 + 12x-2y - 12 = 0

a) Write the equation of the circle in standard form. (3 points)

b) What is the center of the circle? (1 point)

c) What is the radius of the circle? (1 points)

d) Sketch a graph of the circle and label the center and the endpoints of the horizontal and
vertical diameter. (4 points)

Answers

Answer:

Subtract

12

from both sides of the equation.

x

2

+

y

2

12

x

+

2

y

=

12

Complete the square for

x

2

12

x

.

Tap for more steps...

(

x

6

)

2

36

Substitute

(

x

6

)

2

36

for

x

2

12

x

in the equation

x

2

+

y

2

12

x

+

2

y

=

12

.

(

x

6

)

2

36+y2+2y=−12

Move

−36

to the right side of the equation by adding

36

to both sides.

(x−6)2+y2+2y=−12+36

Complete the square for

y2+2y.

Tap for more steps...

(y+1)2−1

Substitute

(y+1)2−1

for

y2+2y

in the equation

x2+y2−12x+2y=−12.

(x−6)2+(y+1)2−1=−12+36

Move

−1

to the right side of the equation by adding

1

to both sides.

(x−6)2+(y+1)2=−12+36+1

Simplify

−12+36+1.

Tap for more steps...

(x−6)2+(y+1)2=25

This is the form of a circle. Use this form to determine the center and radius of the circle.

(x−h)2+(y−k)2=r2

Match the values in this circle to those of the standard form. The variable

r

represents the radius of the circle,

h

represents the x-offset from the origin, and

k

represents the y-offset from origin.

r=5 h=6 k=−1

The center of the circle is found at

(h,k).

Center:

(6,−1)

These values represent the important values for graphing and analyzing a circle.

Center: (6,−1)

Radius:

5

image of graph

Step-by-step explanation:

Answer:

A) (x+6)^2 + (y-1)^2 =49

B) (-6, 1)

C) Radius of 7

D) I’ll try to add picture

Step-by-step explanation:

hotomath

15 Points, please give full equation on how you answer.

Answers

Maybe C i’m just an educated guess I’m very sorry if it’s wrong but I’m just trying to help

A plane flying horizontally at an altitude of 1 mile and a speed of 510 mi/h passes directly over a radar station. Find the rate at which the distance from the plane to the station is increasing when it is 2 miles away from the station. (Round your answer to the nearest whole number.) mi/h

Answers

Answer:

442 miles

Step-by-step explanation:

Given

To properly solve this question, I illustrate some given parameters using attached image

From the image, apply Pythagoras theorem

[tex]x^2 + 1^2 = y^2[/tex]

Differentiate w.r.t time (t)

[tex]2x\frac{dx}{dt} + 0 = 2y\frac{dy}{dt}[/tex]

[tex]2x\frac{dx}{dt} = 2y\frac{dy}{dt}[/tex]

Divide both sides by 2

[tex]x\frac{dx}{dt} = y\frac{dy}{dt}[/tex]

From the question, we have that the plan travels are 510mi/h.

This implies that:

[tex]\frac{dx}{dt} = 510mi/h[/tex]

So, we then calculate the value of x when the distance (y) is 2mi i.e.:

[tex]y = 2mi[/tex]

Apply Pythagoras theorem

[tex]x^2 + 1^2 = y^2[/tex]

[tex]x^2 + 1^2 = 2^2[/tex]

[tex]x^2 + 1 = 4[/tex]

[tex]x^2 = 4-1[/tex]

[tex]x^2 = 3[/tex]

[tex]x = \sqrt 3[/tex]

So, the expression becomes:

[tex]x\frac{dx}{dt} = y\frac{dy}{dt}[/tex]

[tex]\sqrt 3 * 510 = 2* \frac{dy}{dt}[/tex]

[tex]\frac{\sqrt 3 * 510}{2} = \frac{dy}{dt}[/tex]

[tex]\sqrt 3 * 255 = \frac{dy}{dt}[/tex]

[tex]\frac{dy}{dt} = 255\sqrt 3[/tex]

[tex]\frac{dy}{dt} = 255 * 1.7321[/tex]

[tex]\frac{dy}{dt} = 441.655[/tex]

[tex]\frac{dy}{dt} = 442[/tex]

Hence, the distance is 442 miles

If you don’t know I don’t answer (NO LINKS )

Answers

Uhh I might just answer this so the guy who did so much can get brainliest

What does (2+4(6))/2 equal?

16
13
14
10

Answers

Answer : is 13 hope it helps you

Answer:

13

Step-by-step explanation:

You must use PEMDAS to solve this equation.

Solve everything in the parentheses first;

4(6) = 24

24 + 2 = 26

26 / 2 = 13

Final answer = 13

What is the value of y in the equation 3(3y-12)=0

Answers

Answer:

y = 4

Step-by-step explanation:

use the distributive property

9y - 36 = 0

     +36  +36

9y = 36

divide by 9

y = 4

Hope this helped! Have a nice day! Plz mark as brainliest!!! :D

-XxDeathshotxX

Which of the following sets of data does NOT represent a function? Set A x y 6 3 8 4 5 7 9 2 Set B x y 0 3 1 8 2 8 3 -7 Set C x y 10 7 20 11 30 9 40 7 Set D x y 3 9 2 2 8 -3 2 1 a. Set A b. Set B c. Set C d. Set D

Answers

Answer:

Set D

Step-by-step explanation:

There's 2 different y-values for the x value, 2 in Set D

If you can drive 340 miles in 5 hours, what is the unit rate? *
(2 Points)
Enter your answer

Answers

I believe it would be 68 miles per hour! To find the unit rate here you would divide miles by hours, or 340 by 5, which would give you 68.

PLEASE I NEED HELP CLICK ON THIS IMAGE

Answers

Answer:

24 miles per hour.

Step-by-step explanation:

you divide 144 by 6 to get 24.

Answer:

24 miles per hour

Step-by-step explanation:

To find the mph rate, you just have to take the number of miles traveled, divided by the time.

So:

144 ÷ 6 = 24

Which means they were traveling at 24 miles per hour

PLS HELP ME OUT WITH THIS
Student A: 78, 99, 80, 85, 95, 79, 85, 96
Student B: 100, 80, 79, 75, 92, 93, 75, 78, 84

Student A Mean:

Student A Mean Absolute Deviation:

Student B Mean:

Student B Mean Absolute Deviation:

Answers

Student A Mean:

(78 + 99 + 80 + 85 + 95 + 79 + 85 + 96)/8 = 87.125

Student A Mean Absolute Deviation: 7.15625

Student B Mean:

(100+ 80+ 79+75+92+ 93+75+ 78+ 84) / 9 = 84

Student B Mean Absolute Deviation: 7.33

A cup of coffee at 95 degrees Celsius is placed in a room at 25 degrees Celsius. Suppose that the coffee cools at a rate of 2 degrees Celsius per minute when the temperature of the coffee is 70 degrees. The differential equation describing this has the form

Answers

Answer:

See Explanation

Step-by-step explanation:

For an object at temperature T and supposing that the ambient temperature is Ta then we can write the differential equation that typifies the Newton law of cooling as follows;

dT/dt=-k(T-Tₐ)

So

dT/dt = 2 degrees Celsius per minute

T = 70 degrees Celsius

Ta = 25 degrees Celsius

2 = -k(70 - 25)

-k = 2/(70 - 25)

k = - 0.044

Hence we can write;

dT/dt=-(- 0.044)(95-25)

dT/dt= 3 degrees Celsius per minute

What is the horizontal asymptote of the function g(x)= 3(0.8)^x +6

Answers

Y = tan (x)
Y = 3x0.8x + 6
(0,0) (0,9)

Missy has a box that is 5 in. high, 20 in. long, and 5 in. wide. Use a formula to find the volume of the box.
Which of the following is the volume?
OA. 50 cubic inches
OB. 100 cubic inches
C. 250 cubic inches
O D. 500 cubic inches

Answers

Answer:

Its D

Step-by-step explanation:

I just submited that same exact test from connexus

Answer: D 500 cubic centimeters

Step-by-step explanation:

The formula of a volume is Volume = Length x Width x Height. In this case, it already gave us all of the sides that we need! So all we need to do is multiply 5 x 5 x 20 which gives us 500 cubic centimeters!

Hope this helped! ^^

What is the equation of this trend line?
Enter your answers by filling in the boxes.
K= J+

Answers

Answer:

K = -2  J = 28

Step-by-step explanation:

I took the k12 test

Answer:

The answer is K=-2 J+24.

Step-by-step explanation:

how do i solve this?​

Answers

Answer:

m∠R = 60°

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Brackets Parenthesis Exponents Multiplication Division Addition Subtraction Left to Right  

Equality Properties

Multiplication Property of Equality Division Property of Equality Addition Property of Equality Subtraction Property of Equality

Trigonometry

[Right Triangles Only] SOHCAHTOA  [Right Triangles Only] sinθ = opposite over hypotenuse

Step-by-step explanation:

Step 1: Identify

Angle θ = ∠R

Opposite Leg of ∠R = 10√3

Hypotenuse = 20

Step 2: Solve

Substitute in variables [sine]:                                                                         [tex]\displaystyle sin(R^\circ) = \frac{10\sqrt{3}}{20}[/tex][Equality Property] Trig inverse:                                                                    [tex]\displaystyle R^\circ = sin^{-1}(\frac{10\sqrt{3}}{20})[/tex]Evaluate trig:                                                                                                   [tex]\displaystyle R = 60^\circ[/tex]

g The distribution of the monthly amount spent on childcare in a Midwestern city has a mean of $675 and a standard deviation of $80. A random sample of 64 families in this city paying for childcare is selected. Find the probability that the sample mean is less than $650. (Round the result to 4 decimal places.)

Answers

Answer:

0.0062 = 0.62% probability that the sample mean is less than $650.

Step-by-step explanation:

To solve this question, we need to understand the normal probability distribution and the central limit theorem.

Normal Probability Distribution:

Problems of normal distributions can be solved using the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the z-score of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.

Central Limit Theorem

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation [tex]s = \frac{\sigma}{\sqrt{n}}[/tex].

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

Mean of $675 and a standard deviation of $80.

This means that [tex]\mu = 675, \sigma = 80[/tex]

A random sample of 64 families in this city paying for childcare is selected.

This means that [tex]n = 64, s = \frac{80}{\sqrt{64}} = 10[/tex]

Find the probability that the sample mean is less than $650.

This is the pvalue of Z when X = 650.

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

By the Central Limit Theorem

[tex]Z = \frac{X - \mu}{s}[/tex]

[tex]Z = \frac{650 - 675}{10}[/tex]

[tex]Z = -2.5[/tex]

[tex]Z = -2.5[/tex] has a pvalue of 0.0062

0.0062 = 0.62% probability that the sample mean is less than $650.

The probability that the sample mean is less than $650 is 0.62%.

The z score is given by:

[tex]z=\frac{x-\mu}{\sigma/\sqrt{n} } \\\\where\ x=raw\ score,\sigma=standard\ deviation,\mu=mean,n=sample\ size\\\\\\Given \ \mu=675,\sigma=80,n=84, hence:\\\\For\ x<650:\\\\z=\frac{650-675}{80/\sqrt{64} } =-2.5[/tex]

From the normal distribution table:

P(x < 650) = P(z < -2.5) = 0.0062 = 0.62%

The probability that the sample mean is less than $650 is 0.62%.

Find out more at: https://brainly.com/question/15016913

PLEASE I NEED HELP CLICK ON THIS IMAGE

Answers

Answer:

Its 10, because it repeats the most

Step-by-step explanation:

i need helpon this
please

Answers

The answer is 4 $:$/&.):):&.&6:)3!/9:)(3?/
It's might be 22 if m=6 than it would be 36-14 cause 7x2=14 so ye
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