# Q1. The infidelity mutual fund projects three possible outcomes for next year: weak performance (-5 percent), good performance (10 percent) and outstanding performance (30 percent). The good performance has a 50 percent chance of happening and is twice as

**jsaibu**

Q1. The infidelity mutual fund projects three possible outcomes for next year: weak performance (-5 percent), good performance (10 percent) and outstanding performance (30 percent). The good performance has a 50 percent chance of happening and is twice as likely as the other outcomes. What is the expected value?
Q2. An investment has the following range of outcomes and probabilities:
Outcome Probability of outcomes
6% 0.20
9 0.60
12 0.20
Calculate the expected value and the standard deviation (round to two places after decimal point where necessary).
Q3. Compute the duration for the following data. Use a discount rate of 13 percent.
Year cash flow
1 $ 50
2 50
3 50
4 50
5 50
5 $1,000
b. Explain why the answer to part A is higher than the answer to problem 2.
c. if in part A the discount rate were 10 percent instead of 13 percent, would duration be longer or shorter? You do not need to actually compute a value; merely indicate an answer based on the discussion material in the text.

- 8 years ago
- 10

**Answer(1)**

Purchase the answer to view it

NOT RATED

- assignment_question.docx

**Bids(0)**

**other Questions(10)**

- art #1 Dr. Jones is interested in expanding his practice by add ing a piece of radiology equipment. The basic cost of the equipment would be $79,000...
- Hca 333 Week 2 Assignment
- BSA 375 Week #5 Team Assignment- Kudler Frequent Shopper Proposal
- Family And Marriage
- RES-600 Paper
- Assignment 2: You Are an Entrepreneur!
- astrologer
- Financial Management Decision Process Problems
- Assignment #1 three stages of production (excel solution)
- Needed done asap

### Q1. The infidelity mutual fund projects three possible outcomes for next year: weak performance (-5 percent), good performance (10 percent) and outstanding performance (30 percent). The good performance has a 50 percent chance of happening and is twice as

NOT RATEDQ1. The infidelity mutual fund projects three possible outcomes for next year: weak performance (-5 percent), good performance (10 percent) and outstanding performance (30 percent). The good …

7 years ago

**Tips(0)**