An investor has $1000 to invest in speculative stocks. He is considering investing m dollars in stock A and (1000- m) dollars in stock B. An investment in stock A has a 0.6 chance of doubling in value, and a 0.4 chance of being lost. An investment in stock B has a 0.7 chance of doubling in value, and a 0.3 chance of being lost. The investor's utility function for a change in fortune, x, is U(x)=log(0.0007x+1) for-1000 1000. x (a) What is R (for a fixed m)? (It consists of four elements. )
(b) what is the optimal value of m in terms of expected utility?
(Note: This perhaps indicates why most investors opt for a diversified portfolio of stocks.)

b. 6

step-by-step explanation:

we are given the table representing an exponential function.

we can see from the table that, as x is increasing, the value of y is increasing in the power of 6.

i.e. the following relation is obtained,

x = 1, y = 6

x = 2, y = 36 =

x = 3, y = 216 =

x = 4, y = 1296 =

x = 5, y = 7776 =

so, the geometric series obtained is .

thus, the common ratio is given by = = 6.

hence, the common ratio is 6.

answer: the answer is fre sha voca do

step-by-step explanation:

constant of proportionality = 3 and the equation is c = 3p.

step-by-step explanation:

c = kp   where c = amount of caffeine in mg., p = oz of pepsi and k is the constant of proportionality.

substituting the values given:

24 = 8k

k = 3.

the same value of k will be obtained if we substitute the other given values.

mathpapa

step-by-step explanation: