expected return is 13% with a standard deviation of 30%.
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Q: Q17. A single share of a stock was purchased prior to the company's release of its quarterly report.…
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A: Sample size, n = 10Probability , p = 65% = 0.65
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- You are deciding to launch your own jewelry line. After researching the market, you predict you have a 37% chance of earning $5,200, a 28% chance of breaking even, and a 35% chance of losing $3,800. Calculate the expected value. Is this a good investment? Explain.A 38 -year-old woman purchases a $200,000 term life insurance policy for an annual payment of $370. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999052. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems.Q17. A single share of a stock was purchased prior to the company's release of its quarterly report. There is a 58% chance that the company will meet the quarterly sales expectations for its new product two weeks from now, and the value of the stock will go to $440. Otherwise, the company will not meet the quarterly sales expectations, and the value of the stock will go down to $100. What is the expected value of the stock two weeks from now? (Round to the nearest dollar. Do not enter $ sign.)
- A company estimates that 0.8% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $250. If they offer a 2-year extended warranty for $35, what is the company's expected value of each warranty sold? Round your answer to the nearest cent.Suppose a stock sells for $45 today. The annual volatility of the stock is 37%, and analysts predict the expected price of the stock in a year will be $50. What is the probability that in one year the stock will sell for more than $53? 28.4% 25.6% O 34.7% O 36.6%Suppose that the life-time of a certain printer follows an exponential distribution with mean 2 years. The manufacture of this printer offers 100% refund if the printer fails during the first year and 50% if it fails during the second year and none afterward. a. Evaluate the probability of full refund. A. 0.05 B. 0.24 C. 0.39 D. 0.47 E. 0.52 b. Assume that each printer costs $100.00. Determine the expected refund for each sold printer. A. 46 B. 51 C. 54 D. 61 E. 66
- Suppose that you just bought a painting for $1million. You plan to sell it exactly one year fromnow. You don’t know what the exact price will bewhen you sell. Nevertheless, you believe thatthere’s a 65% chance that you can sell it for$1.2million, and a 35% chance that you can sell itfor only $900,000. What is your expected gain orloss for this investment?United Healthcare is setting plan prices for cancer survivors in the upcoming plan year. It is estimated that 26% of survivors of a particular cancer will redevelop cancer in the next year, and that the treatment will cost about $350,000. United would like to maintain an expected value of $550 per plan; how much do they need to charge each person in order to attain this expected value?Exponential distribution is used to predict how long it will take for an event to occur in the future. For example: the time between two customers coming to a bank, the time until an equipment breaks down, or how long after the next Istanbul earthquake will occur. The average time between two phones coming to a workplace corresponds to an exponential distribution of 15 minutes. What is the probability that the first call will arrive within 5 to 8 minutes after the workplace opens on Monday morning? (Guidance: Investigate the relationship between the exponential distribution and the Poisson distribution.)
- The probability that a 29-year old female will die within 1-year is 0.000594. If an insurance company sells a 1-year, $50000 life insurance policy to a 29-year old female for $77, what is the expected value for the insurance company? Round your answer to the nearest cent.Imagine a population evolving by genetic drift, in which the frequency of allele K is 0.6. What is the probability that at some point in the future allele K will drift to a frequency of 1.0? Express your answer as a number between 0 and 1.You buy a stock that has an annual expected return of 20% and a standard deviation of 25%. Last year, investors in the stock lost 32.5% of their money and the year before they gained 40%. What is the probability that the outcome on this stock will be better than -32.5%, but less than +40% this year? a 18.75% b. 52.50% c. 78.82% d. 22.97% e. 77.03%
