Wednesday
October 1, 2014

Homework Help: Probability

Posted by Julie on Sunday, February 1, 2009 at 8:35pm.

There are three investment plans for your consideration. Each plan calls for an investment of $25,000 and the return will be one year later. Plan A will return $27,500. Plan B will return $27,000 or $28,000 with probabilities of 0.4 and 0.6, respectively. Plan C will return $24,000, $27,000, or $33,000 with probabilities of 0.2, 0.5, and 0.3, respectively. If your objective is to maximize the expected return, which plan should you choose?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

finance - Under normal conditions (70% probability), Financing Plan A will ...
College math HELP!!!!! - A financier plans to invest up to $450,000 in two ...
math - interest rates/annuity - Plan to save $5000 per year for retirement with ...
business - A women has $500,000 invested in two rental properties. One yields an...
Finance - Walmart wishes to determine the rate of return of an investment made ...
Economics - A $90,000 investment is made. Over a 5 year period, a return of $30,...
finite!!! - an investor is considereing three types of investment: a high-risk ...
Finance - Consider the following information and calculate the required rate of ...
Algebra investment - An investor had a total of 25,000 put into a portfolio of ...
Finance - Your company sponsors a 401(k) plan into which you deposit 12 percent ...

Search
Members