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3 years ago

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10. The continuously compounded annual return on a stock is normally distributed with a mean of 20% and standard deviation of 30

%. With 95.44% confidence, we should expect its actual return in any particular year to be between which pair of values

1 answer:

ehidna [41]3 years ago

7 0

Answer: We should expect its actual return in any particular year to be between<u> -40%</u> and<u> 80%</u>.

Step-by-step explanation:

Given : The continuously compounded annual return on a stock is normally distributed with a mean 20% and standard deviation of 30%.

From normal z-table, the z-value corresponds to 95.44 confidence is 2.

Therefore , the interval limits for 95.44 confidence level will be :

Lower limit = Mean -2(Standard deviation) = 20% -2(30%)= 20%-60%=-40%

Upper limit = Mean +2(Standard deviation)=20% +2(30%)= 20%+60%=80%

Hence, we should expect its actual return in any particular year to be between<u> -40%</u> and<u> 80%</u>.

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A 1000-liter (L) tank contains 500 L of water with a salt concentration of 10 g/L. Water with a salt concentration of 50 g/L flo

djverab [1.8K]

Answer:

a) $y(t)=50000-49990e^{\frac{-2t}{25}}$

b) $31690.7 g/L$

Step-by-step explanation:

By definition, we have that the change rate of salt in the tank is $\frac{dy}{dt}=R_{i}-R_{o}$ , where $R_{i}$ is the rate of salt entering and $R_{o}$ is the rate of salt going outside.

Then we have, $R_{i}=80\frac{L}{min}*50\frac{g}{L}=4000\frac{g}{min}$ , and

$R_{o}=40\frac{L}{min}*\frac{y}{500} \frac{g}{L}=\frac{2y}{25}\frac{g}{min}$

So we obtain. $\frac{dy}{dt}=4000-\frac{2y}{25}$ , then

$\frac{dy}{dt}+\frac{2y}{25}=4000$ , and using the integrating factor $e^{\int {\frac{2}{25}} \, dt=e^{\frac{2t}{25}$ , therefore $(\frac{dy }{dt}+\frac{2y}{25}}=4000)e^{\frac{2t}{25}$ , we get $\frac{d}{dt}(y*e^{\frac{2t}{25}})= 4000 e^{\frac{2t}{25}$ , after integrating both sides $y*e^{\frac{2t}{25}}= 50000 e^{\frac{2t}{25}}+C$ , therefore $y(t)= 50000 +Ce^{\frac{-2t}{25}}$ , to find $C$ we know that the tank initially contains a salt concentration of 10 g/L, that means the initial conditions $y(0)=10$ , so $10= 50000+Ce^{\frac{-0*2}{25}}$

$10=50000+C\\C=10-50000=-49990$

Finally we can write an expression for the amount of salt in the tank at any time t, it is $y(t)=50000-49990e^{\frac{-2t}{25}}$

b) The tank will overflow due Rin>Rout, at a rate of $80 L/min-40L/min=40L/min$ , due we have 500 L to overflow $\frac{500L}{40L/min} =\frac{25}{2} min=t$ , so we can evualuate the expression of a) $y(25/2)=50000-49990e^{\frac{-2}{25}\frac{25}{2}}=50000-49990e^{-1}=31690.7$ , is the salt concentration when the tank overflows

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