The expected value of an investment: is lower the higher the risk. is the sum of the probability multiplied by the payoff of each of the possible payoffs. are benchmarks against which quantifiable risks can be assessed.
If an investment has a 67 percent probability of yielding a payoff of $300 and a 33 percent probability of yielding a $1000 payoff, then the expected value of the investment is: $650.00 $531.00 There is not enough information to calculate the expected value. $351.00.
If an investment has a 40% (0.40) probability of returning $2,000; a 30% (0.30) probability of returning $3,500; and a 30% (0.30) probability of returning $3,000; the expected value of the investment is: $2,750 $2,570 $8,500 $2,833.
An investment with a small spread between possible payoffs will generally have: a high expected return. a low standard deviation. a high value at risk. both a high expected return and a high value at risk.
The greater the standard deviation: the smaller the risk. the smaller the variance. the greater the value at risk. the greater the risk.
What are the weights of a portfolio that is 70 A capital shares sold at $ 40 each and 110 B capital shares sold at $ 22?
Consider that investment A=2,800 usd and B = 2,420 usd A = 0.5364 y B = 0.4636 A = 0.4636 y B = 0.5364.
A portfolio that has $ 1200 invested in capital A and 1900 in capital B. If the expected performance of these shares are 11% and 16%, respectively, what is the expected return of the portfolio? 14.06% 16.04% 13.50%.
A portfolio is 50% invested in equity X, 30% equity and 20% equity Z. Expected returns of these three stocks are 11%, 17% and 14%, respectively. What is the expected return of the portfolio? 13.40% 14.30% 33.33% 14.00%.
You have 10,000 to invest in a portfolio of shares. Your choices are the actions of X with an expected yield of 14% and shares of Y with an expected yield of 9%. If your goal is to create a portfolio with an expected return of 12.2%, How much money invested in the shares of X? And in the actions of and? Use solver. X=6,400 Y=3,600 X=3,600 Y=6,400.
The expectation of the sum of two variables is the sum of the mathematical expectation of each of the variable, provided each of them exist. If X and Y are any two random variables, then
E [X + Y] = E[X] + E[Y] True False.
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