Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

An investor is considering three sorts of investments: a high-risk venture in oil leases with the potential return of 15%, medium-risk investment in stocks with the 9% return, and the relatively safe bond investment with 5% return.  He has $50,000 to invest.  Because of risk, he will limit his investment in oil leases and stocks to 30% and his investment in oil leases and bonds to 50%. How much must he invest in each to maximize his return, supposing investment returns are as expected?

  1. Maximum = $1650 with Stock = $10,000, Bonds = $15,000
  2. Maximum = $3650 with Oil = $15,000, Stock = $10,000, Bonds = $25,000
  3. Maximum = $2750 with Oil = $15,000, Bonds = $10,000
  4. Maximum = $2750 with Oil = $15,000, Stock = $10,000, Bonds = $25,000

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M923221

Have any Question? 


Related Questions in Statistics and Probability

The time spentin days waiting for a kidney transplant for

The time spent(in days) waiting for a kidney transplant for people ages 35-49 can be approximated by the normal distribution, as shown in the figure to the right. (a) What waiting time represents the 99th percentile? (b) ...

For each of the following three cases explain i the

For each of the following three cases, explain (i) the hypotheses with a plausible definition of p1 and p2, (ii) whether or not the data indicate practical significance (use common sense and/or general knowledge), and (i ...

Discuss how the concept of behavioral variability relates

Discuss how the concept of behavioral variability relates to the following topics: a. the research questions that interest behavioral researchers b. the design of research studies c. the measurement of behavior d. the an ...

Assume that the number of pieces of junk mail per day that

Assume that the number of pieces of junk mail per day that a person receives in their mail box follows the Poisson distribution and averages 3.5 pieces per day. What is the probability that this person will receive exact ...

A study wants to examine the relationship between student

A study wants to examine the relationship between student anxiety for an exam and the number of hours studied. The data is as follows: Student Anxiety Scores Study Hours 5 1 10 6 5 2 11 8 12 5 4 1 3 4 2 6 6 5 1 2 Why is ...

A person goes to his office everyday he has a single

A person goes to his office everyday. He has a single umbrella. When he is home and the umbrella is home, he can choose to bring it. He will certainly do so if it is raining, but must decide what to do if is not raining, ...

If the difference between two means is not statistically

If the difference between two means is not statistically significant, how certain are you that the independent variable really does not affect the dependent variable?

1 how many conditions are there in the simplest possible

1. How many conditions are there in the simplest possible experiment? 2. Describe how participants are assigned to conditions in randomized groups, matched-subjects, and repeated measures experimental designs. 3. What ar ...

What three criteria must be met to establish that one

What three criteria must be met to establish that one variable causes changes in behavior? Which of these criteria are met by quasi-experimental designs? Which of these criteria are not met, and why?

Construct an aumann model of incomplete information for

Construct an Aumann model of incomplete information for each of the following situations, and specify a state of the world in that model which corresponds to the situation (there are several possible ways of including hi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen