Ajewelry supplier has a supply of earrings which are 10% platinum. a store owner orders five sets of earrings from the supplier. if the supplier selects the pairs of earrings at random, what is the chance that the jewelry store gets exactly two sets of platinum pairs

Our required probability is 0.0729.

Step-by-step explanation:

Since we have given that

Number of sets of earrings from the supplier = 5

Percentage of them is platinum = 10%

Here, p = 10% = 0.10

q = 1-0.10 = 0.90

We need to find the probability that the jewelry store gets exactly two sets of platinum pairs.

So, x = 2

We will use "Binomial distribution":

So, it becomes,

Hence, our required probability is 0.0729.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%

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step-by-step explanation: