Mathematics, 28.11.2019 04:31 carolyntowerskemp
An investor with $10,000 available to invest has the following options: (1) he can invest in a risk-free savings account with a guaranteed 3% annual rate of return; (2) he can invest in a fairly safe stock, where the possible annual rates of return are 6%, 8%, or 10%; or (3) he can invest in a more risky stock, where the possible annual rates of return are 1%, 9%, or 17%. the investor can place all of his available funds in any one of these options, or he can split his $10,000 into two $5000 investments in any two of these options. the joint probability distribution of the possible return rates for the two stocks is given in the file p09_34.xlsx.
a. use precisiontree to identify the strategy that maximizes the investorâs expected one-year earnings.
b. perform a sensitivity analysis on the optimal decision, letting the amount available to invest and the risk-free return both vary, one at a time, plus or minus 100% from their base values, and summarize your findings.
Answers: 3
Mathematics, 21.06.2019 20:00
Question 3 (essay worth 10 points) (03.06 mc) part a: max rented a motorbike at $465 for 5 days. if he rents the same motorbike for a week, he has to pay a total rent of $625. write an equation in the standard form to represent the total rent (y) that max has to pay for renting the motorbike for x days. (4 points) part b: write the equation obtained in part a using function notation. (2 points) part c: describe the steps to graph the equation obtained above on the coordinate axes. mention the labels on the axes and the intervals. (4 points)
Answers: 1
An investor with $10,000 available to invest has the following options: (1) he can invest in a risk...
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