Asked by Taryn Scott on Apr 23, 2024
Verified
What is the expected monetary value (in $) of the Q index fund?
A) 1.38
B) 0.29
C) 1.11
D) 0.93
Expected Monetary Value
A decision-making tool in risk management that combines the probabilities of different outcomes with the monetary gains or losses they would produce, to estimate the average outcome.
PHStat
An Excel add-in that enhances and expands upon the statistical capabilities provided by Microsoft Excel.
- Perceive the method for undertaking day trading analysis via PHStat to enhance investment decision-making.
- Scrutinize several statistical metrics, namely expected monetary value, standard deviation, and return to risk ratio, among a range of investment choices.
Verified Answer
KM
Kimberly MamchurMay 02, 2024
Final Answer :
C
Explanation :
According to the table, the expected monetary value for the Q index fund is $1.11, which is higher than the expected monetary value for the other two index funds. Therefore, the best choice is to invest $200 in the Q index fund.
Learning Objectives
- Perceive the method for undertaking day trading analysis via PHStat to enhance investment decision-making.
- Scrutinize several statistical metrics, namely expected monetary value, standard deviation, and return to risk ratio, among a range of investment choices.
Related questions
For the Given Two-Asset Portfolio,what Is the Portfolio Risk
For the Five-Year Period Ended December 31, 2006, the Sprott ...
If an Investment Doubles in Nine Years, How Long Will ...
Rashad Is Risk Averse and Has $3,000 with Which to ...
Amanda Talks with Several Different Brokers at a Social Gathering ...