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2. Suppose the rate of return for bond is R1 and for stock is R2. There are three economical scenarios in 2023: Stagnation, Recession and
2. Suppose the rate of return for bond is R1 and for stock is R2. There are three economical scenarios in 2023: Stagnation, Recession and slow growth with the probability 0.2,0.7 and 0.1. The rate of return for R=(R1,R2) in a year is equal to (0.04,0.05),(0.03,0.02) and (0.02,0.12) (a) Find the probability that the rate of return for both bond and stock is at least 3% in a year, (b) If an investor makes an invest with 1000 for the bond and 3000 for the stock. Find the probability that the amount of the initial investment is more than 4200 . 2. Suppose the rate of return for bond is R1 and for stock is R2. There are three economical scenarios in 2023: Stagnation, Recession and slow growth with the probability 0.2,0.7 and 0.1. The rate of return for R=(R1,R2) in a year is equal to (0.04,0.05),(0.03,0.02) and (0.02,0.12) (a) Find the probability that the rate of return for both bond and stock is at least 3% in a year, (b) If an investor makes an invest with 1000 for the bond and 3000 for the stock. Find the probability that the amount of the initial investment is more than 4200
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