Judy Chang, the account manager for Northern Securities, has a portfolio that includes 20 shares of Allied

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Judy Chang, the account manager for Northern Securities, has a portfolio that includes 20 shares of Allied Information Systems and 30 shares of Bangalore Analytics. Both firms provide Web-access devices that compete in the consumer market. The price of Allied stock is normally distributed with mean mX = 25 and variance s2 X = 81. The price of Bangalore stock is also normally distributed with the mean mY = 40 and the variance s2 Y = 121. The stock prices have a negative correlation, rXY = -0.40. Judy has asked you to determine the probability that the portfolio value exceeds 2,000.

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Statistics For Business And Economics

ISBN: 9780273767060

8th Global Edition

Authors: Paul Newbold, Mr William Carlson, Ms Betty Thorne

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