Question
From his analyst, the investor learned the following figures: One hryvnia invested in Bet Cone, on average, brings 30 kopecks of profit with a standard
From his analyst, the investor learned the following figures:
One hryvnia invested in Bet Cone, on average, brings 30 kopecks of profit with a standard deviation of 10 kopecks, invested in Hair Team - 50 kopecks of profit with a standard deviation of 20 kopecks. It was decided to invest UAH 5 million in Bet Cone and UAH 2 million in Hair Team. Considering the financial consequences of companies independent, find:
a) Mathematical expectations;
b) Standard deviation of the investor's profit.
c) How will the answers in items a and b change if an additional UAH 3 million is invested in bonds that bring 10 kopecks of risk-free profit for each invested hryvnia?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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