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Ultrabook 29. A telecommunication company's procurement analyst has forecasted that the average co for one of its key inputs will equal $25.00 per unit. The
Ultrabook 29. A telecommunication company's procurement analyst has forecasted that the average co for one of its key inputs will equal $25.00 per unit. The analyst would like to measure the dispersion around his cost forecast using the probability distribution of purchase costs in the current fiscal year Probability Purchase Cost (S) 0.10 0.25 0.35 0.30 1.00 28.00 27.80 26.40 19.10 The standard deviation of unit purchase costs in the current fiscal year is closest to: A. $0.28 B. $3.74 C. $4.97 30. Marcus Babbage holds a $500,000 investment portfolio. In the current yeat, Babbage will need to withdraw $40,000 to finance a business venture. However, he does not want the withdrawal to hinder his portfolio's principal. His portfolio manager has identified three alternative asset allocations for Babbage: Expected annual return 13 22 15 Standard deviation of return 17 28 19 Which of the three allocations is the most optimal for Babbage's investment portolio? A. A B. B C. C endons, eromote, or warant the accuracy or quality of the
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