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slamgirl [31]
2 years ago
6

Edgar owns 234 shares of Cawh Consolidated Bank, which he bought for $21.38 apiece. Each share pays a yearly dividend of $3.15.

Edgar also owns two par value $1,000 bonds from Cawh Consolidated Bank. The bonds had a market value of 105.166 when he bought them, and pay 8.3% interest yearly. Which aspect of Edgar’s investment in Cawh Consolidated Bank offers a greater percent yield, and how much greater is it? a. The stocks have a yield 6.43 percentage points greater than that of the bonds. b. The stocks have a yield 6.84 percentage points greater than that of the bonds. c. The bonds have a yield 1.05 percentage points greater than that of the stocks. d. The bonds have a yield 9.13 percentage points higher than that of the stocks.
Mathematics
1 answer:
trapecia [35]2 years ago
8 0

Answer: B. The stocks have a yield 6.84 percentage points greater than that of the bonds.

Step-by-step explanation:

Firstly, the yield for stocks will be calculated as:

= return/ investment cost

= $3.15/$ 21.38

= 0.14733395

= 14.73%

The yield for bonds will be calculated as:

= Return/Investment cost

Return = 1,000 x 8.3% = 83

Investment cost = 1,000 x 105.166/100 = 1051.66‬

Yield = 83/1051.66

= 0.07892284

= 7.89%

Then, the difference between the yield will be:

= 14.73% - 7.89%

= 6.84%

Therefore, the stocks have a yield 6.84 percentage points greater than that of the bonds.

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Step-by-step explanation:

Being that We are given,event of Brown hair with two disjoint events, one is { ( BrownHair ) ∩ ( Litter 1) } and the other is { ( BrownHair ) ∩ ( Litter 2) } .

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number of brown haired rodents in litter 2 P(AB) Total number of rodents in litterl

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P(A |B^{c}) =\frac{\text{number of brown haired rodents in litter2}}{\text{Total number of rodents in litter2}}= \frac{3}{5}

And also it is given that we choose litter at random ,so P(B) = P(Bc ) = 1/2

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Lets make use of Bayes rule to find this conditional probability,

So using theorem we get,

P(B|A) = \frac{P(A|B)*P(B)}{P(A|B)*P(B)+P(A|B^{c})*P(B^{c})}

P(B|A) = \frac{(1/2)*(2/3)}{[(1/2)*(2/3)]+[(1/2)*(3/5)]} = \frac{10}{19} = 0.5263

Thus, Given that a brown-haired offspring was selected, probability that the sampling was from litter1 = P(B|A) = 0.5263.

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