Primcipal 739.30 Total = 778.90
Found by trial and error. I tried using equations but when you have TWO unknowns, it's (I think) impossible.
Answer:
14.656%
Step-by-step explanation:
Data provided in the question:
Rate of return, r = 4% = 0.04
Risk aversion of A = 1.85
Standard deviation, σ = 24%
Now,
we have the relation
A = (E - r) ÷ σ²
E = expected return on portfolio
r = Risk free rate
on substituting the respective values, we get
1.85 = (E - 0.04) ÷ (0.24)²
or
0.0576 × 1.85 = (E - 0.04)
or
0.10656 + 0.04 = E
or
E = 0.14656 or
E = 0.14656 × 100% = 14.656%
I’d make the spinner slices into thirds that are even because there would be an equal chance for each slice to be chosen. If I were to spin the spinner, I would have an equal 33.33% chance that it would land on $3, $5, or -$6. This makes it fair because they would all have an equal chance to be chosen!
19200 all you have to do to figure this out is multiply 100 times 8 since the is 8 halfs in 4 hours.
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