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    Jason D'mello
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    This document contains two summaries of investment scenarios. The first calculates the expected return, variance, standard deviation, and expected percentage return of an investment with various possible returns and probabilities. It determines the expected return is 10.5% which is above 10% so the share would be a buy. The second calculates statistics for the amount of wool produced, including the expected amount, variance, and standard deviation. It then provides pricing and cost information to determine that producing 3500 lbs of wool would result in a $1500 loss.

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    This document contains two summaries of investment scenarios. The first calculates the expected return, variance, standard deviation, and expected percentage return of an investment with various possible returns and probabilities. It determines the expected return is 10.5% which is above 10% so the share would be a buy. The second calculates statistics for the amount of wool produced, including the expected amount, variance, and standard deviation. It then provides pricing and cost information to determine that producing 3500 lbs of wool would result in a $1500 loss.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    3 views1 page

    Sample 3

    Uploaded by

    Jason D'mello
    This document contains two summaries of investment scenarios. The first calculates the expected return, variance, standard deviation, and expected percentage return of an investment with various possible returns and probabilities. It determines the expected return is 10.5% which is above 10% so the share would be a buy. The second calculates statistics for the amount of wool produced, including the expected amount, variance, and standard deviation. It then provides pricing and cost information to determine that producing 3500 lbs of wool would result in a $1500 loss.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    X Return on investment Rs.

    0 100 150 250 500


    P(X) Propability 0.2 0.25 0.3 0.15 0.1
    X*P(X) 0 25 45 37.5 50 157.5
    X^2*P(X) 0 2500 6750 9375 25000 43625
    E(X)= 157.5 Rs.

    V(X)= E(X^2)-(E(X))^2
    18818.75

    SD(X)= 137.18 Rs.

    Expected % return= 10.50% >10% Buy the share

    X Amount of wool(lbs) 2500 3500 4500 5500


    P(X) Probability 30% 45% 20% 5%
    X*P(X) 750 1575 900 275 3500
    X^2*P(X) 1875000 5512500 4050000 1512500 12950000
    E(X)= 3500 lbs

    V(X)= E(X^2)-(E(X))^2
    700000

    SD(X)= 836.66003 lbs

    SP= $ 5
    CP= $ 4
    Revenue on 2500 lbs= 12500
    Cost of 3500 lbs= 14000
    Profit= -1500

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