Expected accumulated value for investment A: Expected accumulated value for investment B: Investment A (independent identicaly distributed rate) Rate Probability -0.02 0.5 0.04 0.3 0.06 0.2 DATA DISPLAY YOUR ANSWERS HERE Rate Probability Variance of investment A: Investment B (same rate each year determined at time t=0) 0.015 0.25 Variance of investment B: 0.02 0.6 0.035 0.15 00 Initial Investment 10

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter13: Investment Fundamentals
Section: Chapter Questions
Problem 2LTAI
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Find expect value and variance of A and B

which

 

Expected accumulated value for investment A:
Expected accumulated value for investment B:
Investment A (independent identicaly distributed rate)
0.04
0.3
Rate
Probability
-0.02
0.5
0.06
0.2
DATA
DISPLAY YOUR ANSWERS HERE
Rate
Probability
Variance of investment A:
Investment B (same rate each year determined at time t=0)
0.015
0.25
Variance of investment B:
0.02
0.6
0.035
0.15
Initial Investment
10
Transcribed Image Text:Expected accumulated value for investment A: Expected accumulated value for investment B: Investment A (independent identicaly distributed rate) 0.04 0.3 Rate Probability -0.02 0.5 0.06 0.2 DATA DISPLAY YOUR ANSWERS HERE Rate Probability Variance of investment A: Investment B (same rate each year determined at time t=0) 0.015 0.25 Variance of investment B: 0.02 0.6 0.035 0.15 Initial Investment 10
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