Question: I need your help. how to solve it? You plan to Invest $1,000 in a corporate bond fund or In a common stock fund. The
I need your help. how to solve it?


You plan to Invest $1,000 in a corporate bond fund or In a common stock fund. The lnfonnation to the right about the annual retum (per $1,000) of each of these investments under Q1 different economic conditions is available, along with the probability that each of these economic conditions will occur. Complete parts (a) through (d) below. Economic Corporate Common Probability Condition Bond FundStock Fund 0.01 Extreme recession - 200 - 990 0.09 Recession - 90 - 300 0.15 Stagnation 20 - 100 0.30 Slow growth 80 100 0.35 Moderate growth 90 150 0.10 High growth 100 350 a. Compute the expected return for the corporate bond fund and for the common stock fund. The expected retum for the corporate bond fund is (Round to two decimal places as needed.) The expected return for the common stock fund is (Round to two decimal places as needed.) b. Compute the standard deviation for the corporate bond fund and for the common stock fund. The standard deviation for the corporate bond fund is (Round to two decimal places as needed.) The standard deviation for the common stock fund is (Round to two decimal places as needed.) 0. Would you invest in the corporate bond fund or the common stock fund? Explain. Based on the expected value, the 'V fund should be chosen. Since the standard deviation for the common stock fund is 7 that for the corporate bond fund, the common stock fund E the corporate bond fund and an investor 7 the risk when making a decision. d. If you chose to invest in the common stock fund in (c), what do you think about the possibility of losing $990 of every $1,000 invested if there is an extreme recession? Past records indicate that the probability of online retail orders that tum out to be fraudulent is 0.05. Suppose that, on a given day, 19 online retail orders are placed. Assume that the number of online retail orders that tum out to be fraudulent is distributed as a binomial random variable. Complete parts (a) through (d) below. a. What are the mean and standard deviation of the number of online retail orders that turn out to be fraudulent? The mean number of online retail orders that turn out to be fraudulent is (Type an integer or a decimal. Round to four decimal places as needed.) The standard deviation of the number of fraudulent retail orders is :|. (Type an integer or a decimal. Round to three decimal places as needed.) b. What is the probability that zero online retail orders will turn out to be fraudulent? (Type an integer or a decimal. Round to four decimal places as needed.) c. What is the probability that one online retail order will turn out to be fraudulent? (Type an integer or a decimal. Round to four decimal places as needed.) d. What is the probability that two or more online retail orders will turn out to be fraudulent? (Type an integer or a decimal. Round to four decimal places as needed.)
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