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anzhelika [568]
3 years ago
9

How are volatility and risk related in an investment?

Mathematics
2 answers:
Semenov [28]3 years ago
5 0
The answer is B
hope this helps
natka813 [3]3 years ago
4 0

Answer:

Option: B is the correct answer.

B.  a volatile investment is more risky.

Step-by-step explanation:

<u>Risk--</u>

Risk is the probability or likelihood of losses relative to the expected return on any particular investment.

<u>Volatility--</u>

Volatility is just another way to say unpredictable fluctuation.It simply refers to the natural movement of the stock markets both up and down, and up and down again.

Volatility is written into the DNA of the market.

As in the volatile investment there is a risk that there might be a loss in the investment.

Hence, the correct answer is:

Option: B.

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anastassius [24]
What do you mean?????
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3 years ago
4. The stock market goes up more often that it goes down. Assume the probability that the stock market goes up in a randomly sel
tekilochka [14]

Answer:

a: 0.0022

b: 0.00002

c: 0.0002

d: 924

e:  0.0025

f: 0.6652

g:  Expected value 7.8 months, standard deviation 1.77 months

Step-by-step explanation:

This is a binomial situation.  Either the market goes up, or it doesn't.  (It could stay the same, but it doesn't offer that as an option, so we don't include it).

When calculating probability of a binomial situation, use the formula

(nCr)(p^r)(q^(n-r))   where p is the probability of success, q is the probabilty of failure, n is the the number of times the situation occurs, and r is the desired number of successful outcomes.  The function nCr tells us how many ways you can choose r items from n total items.  In this case, we are choosing some number of months, r, from 12 months, n

For our situation we have:  n = 12, r = 12, p = 0.6, q = 0.4,

For a:   (12C12)(0.6^12)(0.4^0) = (1)(0.0022)(1) = 0.0022

We want all 12 months of success and no months of failure

For b:   (12C0)(0.6^0)(0.4^12) = (1)(1)(0.00002) = 0.00002

We want all months of failure, and no months of success

For c:   (0.6^6)(0.4^6) = 0.0002

We don't need the nCr function because it tells us that it we want 6 months of success followed by 6 months of failure.  There's only 1 way to do that, so there's nothing to count

For d:  12C6 = 924  

There are 924 different ways to the market can go up 6 times out of 12 months

For e:  (12C2)(0.6^2)(0.4^10) = (66)(0.36)(0.0001) = 0.0025

For f:  Add the following probabilities together...

(12C7)(0.6^7)(q^5) + (12C8)(0.6^8)(q^4) + (12C9)(0.6^9)(q^3)

+ (12C10)(0.6^10)(q^2) + (12C11)(0.6^11)(q^1) + (12C12)(0.6^12)(q^0)

= 0.6652

They are mutually exclusive, the probability for the union is zero because they can't happen at the same time

For g:  Find expected value with the formula E = np  , here n = 12, p = 0.6, so

E = 12(0.6) = 7.8 months

Find the standard deviation with the formula s = √(npq), or s = √(Eq), here q = 0.4, so s = √(7.8(0.4)) = 1.77 months

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Glenn needs to cut pieces of ribbon that are each 1 meter long to make ribbon key chains. If he has 6 pieces of ribbon that are
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Answer:

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Step-by-step explanation:

Glenn needs to cut pieces of ribbon that are each 1 meter long to make ribbon key chains. If he has 6 pieces of ribbon that are each 1 dekameter long, how many 1−meter pieces of ribbon can he cut?

1 decametre = 10 metres

Hence,

10 meters = 6 pieces of ribbon

1 meter = x pieces

Cross Multiply

10x = 6

x = 6/10

x = 2/3 (1 meter pieces of ribbon)

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inna [77]
The original price of the dress was $200. This is because 20% of 200 is $40 which was the price after the discount.
Hope this helps :>
4 0
2 years ago
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