<u>Let's solve this problem step-by-step</u>
<u>Let's set</u>:
2x + 6y = 36 -- equation 1
x + 4y = 20 -- equation 2
(equation 2) * 2
2x + 8y = 40 -- equation 3
(equation 3) - (equation 1)
2y = 4
y = 2 -- equation 4
Plug (equation 4)'s value of y into (equation 2)
x + 4(2) = 20
x = 20 - 8
x = 12
<u>Thus x = 12 and y = 2</u>
<u>Let's check, by substituting these values</u>
<u>Answer: x = 12 and y = 2</u>
Hope that helps!
Answer:
1)
the mean rate of return is 17 %
the standard deviation of return is 17.06055
2)
the probability that Marvin's portfolio will make at least 20% over the next 12 months is 0.4325
Step-by-step explanation:
Given the data in the question;
1)
For the portfolio, the mean return and standard deviation are computed as follows;
Mean = Return = 0.65 × 10 + 0.35 × 30
= 6.5 + 10.5
= 17 %
Therefore, the mean rate of return is 17 %
Standard deviation will be;
σp = √( 0.65² × 15² + 0.35² × 40² )
= √( 0.4225 × 225 + 0.1225 × 1600 )
= √( 95.0625 + 196 )
= √291.0625
= 17.06055
Therefore, the standard deviation of return is 17.06055
2)
probability that Marvin's portfolio will make at least 20% over the next 12 months.
P( X > 20 )
we convert to a standard normal variable;
Z = )
Z = 0.17
from z table, p-value is;
p( X < 20 ) = 0.5675
P( X > 20 ) 1 - 0.5675 = 0.4325
Therefore, the probability that Marvin's portfolio will make at least 20% over the next 12 months is 0.4325