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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

The de Broglie wavelength of the electron in the ground state of the hydrogen atom...

Biology
1.2K views

Some environmentalists claim that the ways we raise and collect animals and fish for food are...

Mechanical Engineering
1.2K views

Design 4 bevel gears for a shaft driven bicycle. Make appropriate assumptions.

Physics
1.2K views

1 point The tank in the form of a right circular cone of radius 6...

Physics
1.2K views

A car is moving on a circular path and takes a turn If R and...

Physics
1.2K views

ALLEN CAREER INSTITUTE HOTA CAMASTHAND TARGET PRE MEDI Three equal weights A B and C...

Geometry
1.2K views

11 The numbers 1 15 are written on cards the cards are shuffled and one...

Calculus
1.2K views

K Write the converse inverse and contrapositive of If I am in Seattle then I...

Accounting
1.2K views

Traditionally, courts of law offer three remedies, called remedies at law. Highlight these three traditional...

Accounting
1.2K views

help me figure out the parts in red thank you

Accounting
1.2K views

please help with the journal entries. I am confused on what numbers to put and...

Accounting
1.2K views

Required information Problem 5-10 Long-term contract; revenue recognition over time [LO5-8, 5-9] The following information...