portfolio P consists of two stocks: 50 % in invested in stock A and 50% is invested in Stock B. stock A has a standard deviation of 25% and beta of 1.2, and stock B has a standard deviation of 35% and a beta of 0.80. The correlation between thses stocks is 0.4. what is the standard deviation of Portfolio P? what is the beta of Portfolio P? which stock is riskier to a diversified investor?

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A: Given For A) Mean=107.66 Standard deviations=10.7 For B) Mean=74.11 Standard deviations=7.6

Q: Suppose a population has a mean of 100 and a standard deviation of 15. If repeated samples of size…

A: Given: n = 25 σ=15μ=100 The standard deviation of the sample means can be calculated as: σX=σn

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Q: Given population parameters for two populations, population 1 has a mean of 800 and a standard…

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A: Given: r=0.695 Sy=9.01 Sx=10.13 Y=173.14X=105.87

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Q: 21. In 1965, the mean price of a new car was $2,650 and the standard deviation was $1000, In 2011,…

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Q: r at a local zoo is 15.8lbs, with a standard deviation  of 2.4lbs. A researcher records the weight…

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Q: A certain brand of batteries has a lifetime that has a normal distribution with a mean of 50 hours…

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Q: A. The average age of bank managers is 40 years. Assume that the variable is normally distributed.…

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Q: If the temperature at which a certain compound melts is a random variable with mean value 125°C and…

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Q: 2. Suppose golfer Michelle Wie has an average driving distance of 269.1 yards, with a standard…

A: X~N( μ = 269.1  , ? = 13.8) μ = 269.1 , ? = 13.8 Z-score =( x - μ )/? Note: According to bartleby…

Q: Suppose the mathematics SAT scores are normally distributed with a mean of 500 and a standard…

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Q: How large a sample is needed for a correlation of r = 0.54 to be significant using a two-tailed test…

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Q: At American Widgets in 2020, across salespeople the average annual sales was $500,000, with a…

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Q: How I can calculate the standard deviations of each of the two differentassets?

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Q: In a region, the correlation coefficient between corn yield and peanut yield (planted in the same…

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Q: Suppose Stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, and…

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Q: The results of a national survey showed that on average, adults sleep 6.9 hours per night.Suppose…

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Q: Suppose that water usages in American showers are normally distributed, with an average shower using…

A: Hey there! Thank you for posting the question. Since your question has more than 3 parts, we are…

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Compound Probability

Compound probability can be defined as the probability of the two events which are independent. It can be defined as the multiplication of the probability of two events that are not dependent. 

Tree diagram

Probability theory is a branch of mathematics that deals with the subject of probability. Although there are many different concepts of probability, probability theory expresses the definition mathematically through a series of axioms. Usually, these axioms express probability in terms of a probability space, which assigns a measure with values ranging from 0 to 1 to a set of outcomes known as the sample space. An event is a subset of these outcomes that is described. 

Conditional Probability

By definition, the term probability is expressed as a part of mathematics where the chance of an event that may either occur or not is evaluated and expressed in numerical terms. The range of the value within which probability can be expressed is between 0 and 1. The higher the chance of an event occurring, the closer is its value to be 1. If the probability of an event is 1, it means that the event will happen under all considered circumstances. Similarly, if the probability is exactly 0, then no matter the situation, the event will never occur.