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You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts (a) through (c) below. Probability Economic_condition
Stock_X Stock_Y A. Compute the expected return for stock X and for stock Y. The expected return for stock X is (Type an integer or a decimal. Do not round.) The expected return for stock Y is (Type an integer or a decimal. Do not round.) B. Compute the standard deviation for stock X and for stock Y. The standard deviation for stock X is (Round to two decimal places as needed.) The standard deviation for stock Y is (Round to two decimal places as needed.) C. Would you invest in stock X or stock Y? Explain. Choose the correct answer below. A.Since the expected values are approximately the same, either stock can be invested in. However, stockX has a larger standard deviation, which results in a higher risk. Due to the higher risk of stockX, stockY should be invested in. B.Since the expected values are approximately the same, either stock can be invested in. However, stockY has a larger standard deviation, which results in a higher risk. Due to the higher risk of stock Y,stockX should be invested in.Your answer is not correct. C.Based on the expected value, stockY should be chosen. However, stockY has a larger standard deviation, resulting in a higher risk, which should be taken into consideration. D.Based on the expected value, stockX should be chosen. However, stockX has a larger standard deviation, resulting in a higher risk, which should be taken into consideration. |
In: Statistics and Probability
Layton Machining Company (LMC) manufactures two versions of a
basic machine tool. One version is a standard model and one is a
custom model, which requires some additional work and slightly
higher-grade materials. The manufacturing process at LMC requires
that each product go through two departments, Grinding and
Finishing. The process in each department uses a single type of
machine. Total machine capacity in Grinding is 51,000 hours, and in
Finishing, total machine capacity is 31,000 hours. (Each department
has multiple machines.) Total market demand is limited to 102,000
standard units and 122,000 custom units monthly. LMC is currently
producing 92,000 standard units and 53,000 custom units each month.
Cost and machine-usage data for the two products follow:
| Standard | Custom | Total | |||||||
| Price | $ | 6.70 | $ | 8.70 | |||||
| Less variable costs per unit | |||||||||
| Material | 1.55 | 2.05 | |||||||
| Labor | 1.30 | 1.55 | |||||||
| Overhead | 1.80 | 2.55 | |||||||
| Contribution margin per unit | $ | 2.05 | $ | 2.55 | |||||
| Fixed costs | |||||||||
| Manufacturing | $ | 77,000 | |||||||
| Marketing and administrative | 38,000 | ||||||||
| $ | 115,000 | ||||||||
| Grinding machine hours per unit | 0.2 | 0.3 | |||||||
| Finishing machine hours per unit | 0.1 | 0.4 | |||||||
| Grinding machine hours used | 34,300 | ||||||||
| Grinding machine hours available | 51,000 | ||||||||
| Finishing machine hours used | 30,400 | ||||||||
| Finishing machine hours available | 31,000 | ||||||||
| Quantity produced | 92,000 | 53,000 | |||||||
| Maximum demand | 102,000 | 122,000 | |||||||
| Profit | $ | 208,750 | |||||||
a. What is the optimal production schedule for LMC? In other words, how many standard units and custom units should the company produce each month to maximize monthly profit?
Standard Units ____
Custom Units ____
b. If LMC produces at the level found in requirement (a), how much will monthly profit increase over the current production schedule?
Increase profits by ____
In: Accounting
If your bank account pays annual interest rate of 0.2% and compounds the interest every day, how much is the future value of $500 saved in the account for 3 years? (include the equation)
Hint: Assume there are 365 days per year.
In: Finance
Biochemistry: Enzyme Units
Can relative activity be added together? For example, if fraction A has 0.2 U/mL and fraction B has 0.4 U/mL, will combining the two fractions produce a solution with a relative activity of 0.6 U/mL?
In: Chemistry
2) A solid sphere with mass 2kg and radius 0.2 meters is rotating clockwise about its center with ωi =5 rad/s. a) Find its Moment of Inertia. b) We want to double its angular speed in 3 full turns of the sphere. Find its acceleration. c) A constant force is acting on the edge with 135 degrees angle. Find the Force needed to for this acceleration
In: Physics
1) A stone with mass 240 g is swirled around using a 0.2 m long rope such that it makes 10 full revolutions in 17 seconds. a) The speed of the stone is v = m/s. b) The tension in the rope is T = N. c) Work done by the tension force is W = J.
2) A puck is kicked up an icy incline with an initial speed of
3.4 m/s. The angle of the incline is 31 °. The kinetic coefficient
of friction of the puck on ice is μ = 0.15.
a) The time it take for the puck to go up and come back down is t
= s.
b) The maximum distance traveled by the puck up the incline until
is d = m.
c) Find the maximum elevation the puck goes up the incline by using
the principle of conservation of energy. The height h
= m.
3) The electricity price is 10 cents per kWh. What is the monthly cost of electricity for running a light bulb that consumes 70 J per second for 6 hours per day? The cost is $ ___
4) The work done by a force given by = 2 x3 + 7 y2 N that acts on an object that moves along the y axis from yi = 4 m to yf = 6 m is J.
In: Physics
Let x be an exponential random variable with lambda equals 0.2. Calculate the probabilities described below.
a. P(x<7)
b. P(x>8)
c. P(7< = x < = 8)
d. P(x> = 6)
e. the probability that x is at most 8
In: Statistics and Probability
5. How many grams of solid NaCNO must be added to 100 mL of 0.2 M HCNO at 25°C to obtain a buffer at pH = 4.00?
13. What is the pH of the buffer formed when 200 mL of 0.04 M propionic acid is mixed with 50 mL of 0.12 M sodium propionate (NaC3H5O2)at 25 °C?
In: Chemistry
You add 300 mL of Tris-HCl at 0.1 M to a 0.2 L solution
of 0.9% (w/v)NaCl, and to which you add 500 mg of NaCl
(powder).
What is the concentration of Tris-HCl in mM and in
g/L?
Tris-HCl : MW 121.14
NaCl : MW 58.44
In: Biology
Consider a binomial experiment with n=.14 with and p= 0.2.
a. Compute F(0) (to 4 decimals).
b. Compute f(12) (to 4 decimals).
c. Compute P(x< or equal to 1) (to 4 decimals).
d. Compute P(x >or equal to 4) (to 4 decimals).
e. Compute E(x) (to 1 decimal).
f. Compute Var(x) and mean . (to 2 decimals) (to 2 decimals)
In: Statistics and Probability