Question: Suppose the return on an investment is a normal random variable with a mean of $10 and a standard deviation of $1.25. Calculate the variance

Suppose the return on an investment is a normal random variable with a mean of $10 and a standard deviation of $1.25. Calculate the variance of this investment.

2). Define the variance c% as the value |v| such that there is only an ac% chance that the loss on an investment will be greater than c.

to). Derive a formula for the 5% variance in an investment with a profit G that is normally distributed with mean and standard deviation.

b). If G has mean = 15 y = 1.8, find the variance of 5% in this investment 3). Investment A produces a profit that is normally distributed with mean 24 and standard deviation 4.5. Investment B produces a profit that is normally distributed with mean 23 and standard deviation 3.9. Which investment is better in terms of variance?


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