Answer:
Step-by-step explanation:
So we have the function:
To find the inverse function, switch x and f(x), change f(x) to f⁻¹(x), and solve for f⁻¹(x). Therefore:
Switch:
Add 1 to both sides:
Divide both sides by 6:
And that's our answer :)
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2 answers:
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Answer:
Both the stock have the same expected return.
Step-by-step explanation:
In year 1 the return earned by stocks A and B are:
Stock A = 2% return
Stock B = 9% return
In year 2 the return earned by stocks A and B are:
Stock A = 18% return
Stock B = 11% return
Compute the expected return for stock A as follows:
Compute the expected return for stock B as follows:
Thus, both the stock have the same expected return.