The pair of figures is similar. Find the missing side.
2 answers:
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<h2>The required "option D) 3.09" is correct.</h2>
Step-by-step explanation:
Given,
A portfolio has a E[r] = 12 %, and
A standard deviation () = 18 %
We know that,
Specify utility by U = E(r) – 0.5A
U = 0.12– 0.5(A) ×
= 0.12 - 0.5 × A × 0.0162
In order for the risky portfolio to be preferred to bills,
The following condition must have:
0.12 – 0.0162A > 0.07
⇒ A < = 3.09
A must be less than 3.09 for the risky portfolio to be preferred to bills.
Thus, the required "option D) 3.09" is correct.
Answer: 169.2 per acre are produced if a field is in the top 25%.
Step-by-step explanation:
Given: The mean rain-fed corn yield of harvested fields are normally distributed, produce 147.2 bushels per acre with a standard deviation of 33 bushels per acre.
Let X denote the mean rain-fed corn yield of harvested fields.
Let x denotes the number of bushels per acre are produced if a field is in the top 25%.
Top 25% on a density curve means , (100-25%)i.e. 75% area lies below x.
I.e.
.
Z-score for p-value of 0.75 (one tailed)=0.67 [By z-table]
Then,
Here approx value is 169.2 (from options).
So, 169.2 per acre are produced if a field is in the top 25%.