-5 because a negative plus a negative is a positive this is why it is the right answer
Answer:
y = 0.80
Step-by-step explanation:
Given:
- The expected rate of return for risky portfolio E(r_p) = 0.18
- The T-bill rate is r_f = 0.08
Find:
Investing proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%.
What is the proportion y?
Solution:
- The proportion y is a fraction of expected risky portfolio and the left-over for the T-bill compliance. Usually we see a major proportion is for risky portfolio as follows:
E(r_c) = y*E(r_p) + (1 - y)*r_f
y*E(r_p) + (1 - y)*r_f = 0.16
- Re-arrange for proportion y:
y = ( 0.16 - r_f ) / (E(r_p) - r_f)
- Plug in values:
y = ( 0.16 - 0.08 ) / (0.18 - 0.08)
y = 0.80
- Hence, we see that 80% of the total investment budget becomes a part of risky portfolio returns.
<h3>
- - - - - - - - - - - - - - - ~Hello There!~ - - - - - - - - - - - - - - - </h3>
➷ There are 12 inches per feet
(12 x 3) + 4 = 40
It is 40 inches
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➶ Good Luck (:
➶ Have A Great Day ^-^
↬ ʜᴀɴɴᴀʜ ♡
Answer:
a) the probability that the minimum of the three is between 75 and 90 is 0.00072
b) the probability that the second smallest of the three is between 75 and 90 is 0.396
Step-by-step explanation:
Given that;
fx(x) = { 1/5 ; 50 < x < 100
0, otherwise}
Fx(x) = { x-50 / 50 ; 50 < x < 100
1 ; x > 100
a)
n = 3
F(1) (x) = nf(x) ( 1-F(x)^n-1
= 3 × 1/50 ( 1 - ((x-50)/50)²
= 3/50 (( 100 - x)/50)²
=3/50³ ( 100 - x)²
Therefore P ( 75 < (x) < 90) = ⁹⁰∫₇₅ 3/50³ ( 100 - x)² dx
= 3/50³ [ -2 (100 - x ]₇₅⁹⁰
= (3 ( -20 + 50)) / 50₃
= 9 / 12500 = 0.00072
b)
f(k) (x) = nf(x) ( ⁿ⁻¹_k₋ ₁) ( F(x) )^k-1 ; ( 1 - F(x) )^n-k
Now for n = 3, k = 2
f(2) (x) = 3f(x) × 2 × (x-50 / 50) ( 1 - (x-50 / 50))
= 6 × 1/50 × ( x-50 / 50) ( 100-x / 50)
= 6/50³ ( 150x - x² - 5000 )
therefore
P( 75 < x2 < 90 ) = 6/50³ ⁹⁰∫₇₅ ( 150x - x² - 5000 ) dx
= 99 / 250 = 0.396
