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A. The client needs to decide if he should invest on the stocks of a food delivery company, called Pippo. The annual profit per 100

A. The client needs to decide if he should invest on the stocks of a food delivery company, called Pippo. The annual profit per 100 invested for Pippo has been estimated that will follow the probability distribution in the following table:

Pippo

Profit per 100

Probabilities

160

0.10

120

0.25

700

0.20

200

0.15

-300

0.20

-800

0.10

A second stock, of the rival food delivery company called Paperino has the following estimated profit per 100 invested and associated probabilities:

Paperino

Profit

Probabilities

85

0.10

60

0.25

45

0.20

25

0.15

15

0.20

10

0.10

The company considers very good investments the ones characterized by a rate of return above the 18%. What percentage of the stocks included in the portfolio will have a rate of return above the 18%? [5 marks]

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