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svetlana [45]
3 years ago
9

In finance the notion of expected value is used to analyze investments for which the investor has an estimate of the chances ass

ociated with various returns (and losses). For example, suppose you have the following information about one of your investments: With a probability of 0.7, the investment will return 60 cents for every dollar you invest, and with a probability of 0.3, the investment will lose 20 cents for every dollar you invest. The expected rate of return for this investment is calculated the way we calculate the expected value of a game: Multiply the probability of each outcome by the amount you earn (or by minus the amount if you lose) and add up these numbers.
Mathematics
1 answer:
blagie [28]3 years ago
7 0

Answer:

Step-by-step explanation:

The expected return is given as

Expected Return = SUM (Return i x Probability i). i=1,2,3.....

First investment

Probability of 0.7, it returns 60cents per dollars

Second investment

Probably of 0.3, it loses 20cents per dollar.

Expected return=(0.7×60)-(0.3×20)

Excepted return= 42-6

Excepted return=36cents

To dollars, 1cents is 0.01dollars

Then, 36cents = 0.36dollars

Expected return=$0.36

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finlep [7]

Answer:

\text{Probability}=\frac{1}{3}

Step-by-step explanation:

Given : A pair of fair dice is rolled, If the sum of the spots is 7.

To find : Determine the probability that one die showed a 2 ?

Solution :

A pair of fair dice is rolled the outcomes are,

(1, 1) (1, 2) (1, 3) (1, 4) (1, 5) (1, 6)

(2, 1) (2, 2) (2, 3) (2, 4) (2, 5) (2, 6)

(3, 1) (3, 2) (3, 3) (3, 4) (3, 5) (3, 6)

(4, 1) (4, 2) (4, 3) (4, 4) (4, 5) (4, 6)

(5, 1) (5, 2) (5, 3) (5, 4) (5, 5) (5, 6)

(6, 1) (6, 2) (6, 3) (6, 4) (6, 5) (6, 6)

The sum of the spots is 7 i.e. (4,3),(2,5),(5,2),(3,4),(1,6),(6,1).

Total possibility = 6

Favorable outcome is that one die showed a 2 i.e. (2,5),(5,2)= 2

The probability that one die showed a 2 is given by,

\text{Probability}=\frac{\text{Favorable outcome}}{\text{Total outcome}}

\text{Probability}=\frac{2}{6}

\text{Probability}=\frac{1}{3}

8 0
3 years ago
What is the answer in fraction form?<br><br>-4/3÷9/5=?
Katarina [22]

Answer:

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Step-by-step explanation:

-4/3 ÷ 9/5

= -4/3 * 5/9

= -20/27

Hope it helps :)

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Step-by-step explanation:

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Step-by-step explanation:

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