Penelope invested 60% of her retirement account in stocks and 40% in gold. Penelope believes that the return to stocks over the next 12 months is normally distributed with mean rate of return of 15% and standard deviation of return of 25%. Penelope also believes that the return to gold over the next 12 months is normally distributed with mean rate of return of 30% and standard deviation of return of 40%. Finally, Penelope believes that the return to stocks and the return to gold are independent.
1. According to Penelope's beliefs, what are the mean rate of return and the standard deviation of return ot her portfolio?
2. What is the probability that Penelope's portfolio will earn at least 12% in the next 12 months?

Answers

Answer 1

Answer:

1) mean = 21, standard deviation σ = 21.9317

2) the probability that Penelope's portfolio will earn at least 12% in the next 12 months is 0.6591

Step-by-step explanation:

 Given the data in the question;

1. According to Penelope's beliefs, what are the mean rate of return and the standard deviation of return of her portfolio?

Mean μ = Return = ( 60% × 15) + ( 40% × 30 ) = 9 + 12 = 21

mean = 21

standard deviation σ = √( (0.6² × 25²) + ( 0.4² × 40² ) )

standard deviation σ = √( (0.36 × 625) + ( 0.16 × 1600 ) )

standard deviation σ = √( 225 + 256 )

standard deviation σ = √481

standard deviation σ = 21.9317

2)  What is the probability that Penelope's portfolio will earn at least 12% in the next 12 months

so we are to find P( X > 12 )

converting into standard normal variable;

⇒ P( Z  > X-μ  / σ  )

= P( Z  > ( 12-21  / 21.9317  ) )

= P( Z  > ( -9 / 21.9317  ) )

= P( Z  > -0.41 )  

FROM z-score table; P( Z  > -0.41 ) is 0.3409

P( X > 12 ) = 1 - 0.3409

P( X > 12 ) = 0.6591

Therefore,  the probability that Penelope's portfolio will earn at least 12% in the next 12 months is 0.6591


Related Questions

Find the solution of the system of equations.
6x + 2y = 16
2x - =
2y = 32

Answers

Answer:

x=6 and y=−10

Step-by-step explanation:

You can also solve this system by elimination.)

6x+2y=16;2x−2y=32

Step: Solve6x+2y=16for x:

6x+2y+−2y=16+−2y(Add -2y to both sides)

6x=−2y+16

it's proceeds

Quotient of 5 and 1/2

Answers

Answer:

5 divided by 1/2 try that

Step-by-step explanation:

yeah tr this

Answer:

The answer is 10

Step-by-step explanation:

5/(1/2) or 5 times the reciprocal of (1/2) known as 2 would be 10

Help me please thanks

Answers

Answer:

Step-by-step explanation:

you have a right triangle

to find the missing length(x) you will use

a^2+b^2=c^2

where c is the hypotenuse

49^2=25^2+x

x^2=49^2-25^2=2401-625=1776

x=[tex]\sqrt{1776}[/tex]=42.1

Answer:

fguiio0wasiswillandandisandiswas747andtheinthatisthattheisandintheandthatisand8thethehaiandinis66

Write an that
5. Hog head cheese costs $2.15 per pound. ad equation best represents y, the total
cost of x pounds of Hog Head cheese?

Answers

Answer:

[tex]y = 25x[/tex]

Step-by-step explanation:

Given

[tex]Rate = 25[/tex]

Required

Cost of x pounds

To do this we simply multiply x by the rate

[tex]y =Rate * x[/tex]

[tex]y = 25 * x[/tex]

[tex]y = 25x[/tex]

A drink and a sandwich together cost $4.85. The sandwich cost $1.35 more than the drink. How much does the sandwich cost.

Answers

answer:$6.20
$4.85+1.35=6.20

The sandwich will cost $3.1.

What is the arithmetic operator?

Arithmetic operators are four basic mathematical operations in which summation, subtraction, division, and multiplication involve.,

Summation = addition of two or more numbers or variable

For example = 2 + 8 + 9

Subtraction = Minus of any two or more numbers with each other called subtraction.

For example = 4 - 8

Division = divide any two numbers or variable called division.

For example 4/8

Multiplication = to multiply any two or more numbers or variables called multiplication.

For example 5 × 7.

Let's say the cost of 1 drink is d while the cost of 1 sandwich is s

Now,

Given that,

A drink and a sandwich together cost $4.85.

So,

s + d = 4.85

And,

The sandwich cost $1.35 more than the drink.

So,

s = 1.35 + d

By using substitution

s = 1.35 + 4.85 - s

2s = 6.2

s = 3.1

Hence "The sandwich will cost $3.1".

To learn more about the arithmetic operators,

brainly.com/question/25834626

#SPJ2

Ok so I have this problem, 12x+24=6x+3. WHAT DO I DO IF THE X HAS DIFFERENT NUMBERS. Oh and for 5-2x=2x-5 what do i do if ones a negative and ones a positive. Im trying to find the answer and if its 1 solution, no solution, or infinite solutions. Im sure people on here can reply quicker then my math teacher.

Answers

Answer: one solution; that solution is x = -7/2 which is the same as x = -3.5

====================================================

Work Shown:

The idea is to get all the x terms to one side, and the other stuff to the other side. We follow PEMDAS in reverse to help isolate x

12x+24 = 6x+3

12x+24-24 = 6x+3-24 .... subtract 24 from both sides

12x = 6x-21

12x-6x = 6x-21-6x ...... subtract 6x from both sides

6x = -21 ...... now the x terms are all on one side

6x/6 = -21/6 ...... dividing both sides by 6

x = -21/6

x = (-7*3)/(2*3)

x = -7/2

x = -3.5

This is the only solution. Whenever we have different coefficients for the x terms like this, we can see right off the bat we have exactly one solution. Consider graphing y = 12x+24 and y = 6x+3. The two lines will intersect at the point (x,y) where the x coordinate is the solution to the original equation. There is only one point of intersection which corresponds to exactly one solution.

The thing to notice about y = 12x+24 and y = 6x+3 is that the slopes are not the same, so the lines aren't parallel. Parallel lines always have equal slopes but different y intercepts. If your teacher gave you 12x+24 = 12x+3, then the two lines to graph would be y = 12x+24 and y = 12x+3. At this point, we would get two parallel lines that don't intersect, and therefore we wouldn't get any solutions here.

Solve the inequality.
2n > 30

Answers

Answer:

Your answer tho this question is N > 15

Work :

2n>30

Divide both sides by 2.

2n/2 > 30/2

n>15

Hope this helps

How many gallons are in half a quart

Answers

Answer:

1/8 gallon per half quart

Step-by-step explanation:

One quart is 1/4 gallon, so half quart is 1/8 gallon

Answer:

this seems like a weird question but 0.125

which fraction is equivalent to 2/16

Answers

Answer:

1/8

Step-by-step explanation:

Answer:

1/8, 4/32

Step-by-step explanation:

The mean age of 6 women in an office is 34 years old. The mean age of 8 men in an office is 34 years old. What is the mean age (nearest year) of all the people in the office?

Answers

Step-by-step explanation:

204+272/14=34 years old

PLEASE ANSWER AND EXPLAIN PLEASE ILL MARK BRAINLIEST THANK YOU

Answers

Answer:

11 cows and 6 ducks

Step-by-step explanation:

25 points plus brainliest This is language art

Answers

Answer:

Its blurry and I can't see

"The sum of 4 and a number, divided by 2 is less than -6."​

Answers

Answer:

[tex]\frac{4+n}{2} < -6[/tex], n < -16

Step-by-step explanation:

To write this into an inequality you need to recognize keywords. The first keyword is "sum" this means the two numbers must be added; so the first part of the inequality is 4+n. Then, it says the sum is "divided by" 2; this means both numbers must be put over two like [tex]\frac{4+n}{2}[/tex]. Finally, this is "less than" negative. Therefore, this must be an inequality with a sign opening towards -6. So the final answer is [tex]\frac{4+n}{2} < -6[/tex].

To solve the inequality isolate the variable. Multiply both sides by 2, so the new inequality is [tex]4+n<-12[/tex]. Next, subtract 4 from both sides. The answer is n < -16.

james has a recipe that calls for 6 cups of sugar he wants to use only 1/2 of the recipe today how much sugar will he need do you multiply or divide​

Answers

answer:

he would use 3 cups of sugar and would need to multiply

step-by-step explanation:

since he only wants 1/2, we would multiply by the original amount

6 X 1/2 = 3 cups of sugar

What percent of 74 is 13.6? Write your answer to the nearest tenth.

Answers

Answer:

18.37 is the answer so it should be 18.4

Step-by-step explanation:

Maddie and Leah both play offense for their school's soccer team. This year, they decided to keep track of their goals and assists in a friendly competition. So far, Maddie has made 1 goal and 2 assists. Leah has made 2 goals and 5 assists. Do Maddie and Leah have the same ratio of goals to assists so far?

Answers

Answer:

no they don't

Step-by-step explanation:

leah has a higher goal-assist ratio with 1 more assist than maddie

Just wondering does anyway else do vava? 8th grade

Answers

Answer:

I have heard of it but I myself do not

Answer:

What's vava just wondering also your in 8th grade?

Cual es la razón de 3:4

Answers

La razón es 3/4 o tres a cuatro

Statistics Question. Use the Desmos graphing calculator to find the least-squares regression line for the dataset in the table:

Answers

Given:

The table of values.

To find:

The least-squares regression line for the data set in the table by using the desmos graphing calculator.

Solution:

The general form of least-squares regression line is:

[tex]\hat{y}=mx+b[/tex]           ...(i)

Where, m is the slope and b is the y-intercept.

By using the desmos graphing calculator, we get

[tex]m\approx 2.55,b\approx -6.435[/tex]

Substitute these values in (i).

[tex]\hat{y}=(2.55)x+(-6.435)[/tex]

[tex]\hat{y}=2.55x-6.435[/tex]

Therefore, the correct option is A.

The graph of regression line is attached below.

The equation of regression line is [tex]y=2.55x-6.435[/tex]

Equation of regression line:

A graphing calculator is a calculator device that has the ability to display plotted graphs for complex equations.

First we have to enter the given table in graphing calculator,

After entering the data given into table,

We get,   m= 2.55  and b= -6.435

So that, the equation of regression line is [tex]y=2.55x-6.435[/tex]

Learn more about the regression line here;

https://brainly.com/question/26059078

[4 ×{ 3 - ( 2- 1/3 )}]​

Answers

Hopes this helps:

Answer: 16/3

1. Simplify 2 - 1/3 to 5/3.
4(3- 5/3)

2. Simplify 3 - 5/3 to 4/3.
4 • 4/3

3. Use this rule: a • b/c = ab/c.
4 • 4/ 3

4. Simplify 4 • 4 to 16.
16/3
16/3 is the correct answer !!!! Hope thsi helps bye

An item on sale costs 85% of the original price. if the original price was $60, what is the sale price?

Answers

Answer:

9 dollars

Step-by-step explanation:

60*0.85=51

51 is the amount of money you're being discounted.

60-51= 9

Answer:

$46.75

Step-by-step explanation:

The amount the sale item costs now is 0.85($55) = $46.75.

That 85% is equivalent to 0.85.

Find the volume of the composite solid shown below, Round answer to the nearest hundredth.

add the substitute
it means like adding a equation for both of them

Answers

First you’d start off by finding the volume of the rectangular prism on the bottom. The formula for this is lwh or (length*width*height) so you’d plug in the numbers and get 4*4*5 which multiplies out to be 80inches cubed. Next you’d have to find the volume of the pyramid by using the formula lwh/3 or ((length*width*height)/3) so it would be ((4*4*6)/3) and that equals 32inches cubed. Finally, you add the 2 volumes together so 80inches cubed+32inches cubed and get 112inches cubed. Hope this helps

The amount C in grams of carbon-14 present in a certain substance after t years is given by
C = 52e-0.0001097
a. What is the initial amount of carbon-14 present?

Answers

Answer:

987e-628479.9079083

Step-by-step explanation:

Answer:

maybe 7

Step-by-step explanation:

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Answers

Answer:

tyyyy

Step-by-step explanation:

What is the perimeter of the triangle?

Answers

Step-by-step explanation:

perimeter of triangle = sum of all sides

8. Which situation is best modeled by an exponential function?
A The number of mold spores on a loaf of bread, if the amount of mold is quadrupling every 5 days.
B. The amount of tip a person will leave if he or she tips 20% of a food bill.
C. The value of a baseball card that is decreasing by $0.75 every 4 years.
D. The cost to purchase salmon that costs $8.99 per pound.

If answered soon i will give brainliest​

Answers

Answer:

C. The value of a baseball card that is decreasing by $0.75 every 4 years.

Step-by-step explanation:

The exponential function would represent a mathematical function in the form of f(x) = a^x

where

x denotes the variable

a denotes the constant

So according to the given options, the option C would represent the exponential function

Hence, the option c is correct

Area of a rectangle
Equation

Answers

Area = Length x width
Area of rectangle =2(length+width)

Therefore, equation is A=2(l+b)

Find the mean, median, mode, and range of these numbers 75,95,90,95,60,95,75,95,90

Answers

Answer:

Mean=85.56, median=90, mode=95 and range=35

Step-by-step explanation:

To calculate the mean is the same as the average value in a data set. Median is data value separating the upper half of a data set from the lower half. The median is the data value separating the upper half of a data set from the lower half. The range is the difference between the highest and lowest values in a set of numbers. To find it, subtract the lowest number from the largest number.

18m+42n in distributive property

Answers

Adnswer:

18m+42n in distributive property=6(3m+7n)

Step-by-step explanation:

Answer and Step-by-step explanation:

The answer to this expression would be 6(3m + 7n).

18m + 42n is the distributive version of the same expression.

To un-distribute, you would find the greatest common factor of both numbers, and pull it out of the expression.

18 and 42 have a greatest common factor of 6.

18 divided by 6 is 3.

42 divided by 6 is 7.

That leaves us with 6(3m + 7n).

#teamtrees #PAW (Plant And Water)

WILL GIVE THE BRAINLIEST PLS HURRY
if 1/8 of the shaded part is striped, how much of the bar is striped?

Answers

Answer:

7/8?

Step-by-step explanation:

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