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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Shares of company A cost $10 per share and give a profit of X%. Independently of A, shares of company B cost $50 per share and give a profit of Y%. Deciding how to invest $1,000, Mr. X chooses between 3 portfolios:
(a) 100 shares of A,
(b) 50 shares of A and 10 shares of B,
(c) 20 shares of B. The distribution of X is given by probabilities:

Compute expectations and variances of the total dollar profit generated by portfolios (a), (b), and (c). What is the least risky portfolio? What is the most risky portfolio?
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