Table 4.10 Joint Probability Distribution for Stock Prices Stock D Price Stock C Price $40 $50 $60 $70 $45 0.00 0.00 0.05 0.20 $50 0.05 0.00 0.05 0.10 $55 0.10 0.05 0.00 0.05 $60 0.20 0.10 0.05 0.00
Table 4.10 Joint Probability Distribution for Stock Prices Stock D Price Stock C Price $40 $50 $60 $70 $45 0.00 0.00 0.05 0.20 $50 0.05 0.00 0.05 0.10 $55 0.10 0.05 0.00 0.05 $60 0.20 0.10 0.05 0.00
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
George Allen has asked you to analyze his stock portfolio, which contains 10 shares of stock D and 5 shares of stock C. The joint probability distribution of the stock prices is shown in Table 4.10. Compute the mean and variance for the total value of his stock portfolio.
Transcribed Image Text:Table 4.10 Joint Probability Distribution for
Stock Prices
Stock D Price
Stock C
Price
$40
$50
$60
$70
$45
0.00
0.00
0.05
0.20
$50
0.05
0.00
0.05
0.10
$55
0.10
0.05
0.00
0.05
$60
0.20
0.10
0.05
0.00
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