Aportfolio's value increases by 18% during a nancial boom and by 9% during normal times. it decreases by 12% during a recession. what is the expected return on this portfolio if each scenario is equally likely?

expected return = 5%

Step-by-step explanation:

given data

increases during nancial boom = 18%

increases during normal times = 9%

decrease  during recession =  12%

to find out

expected return on this portfolio

solution

we know there are 3 scenario

so each scenario =

we get here expected return on this portfolio that is express as

expected return = 0.18 × + 0.09 × - 0.12 ×

expected return = 0.05

expected return = 5%

f(x) has value 150 at x= 0

and 0 at x= 3

so d(f(x))/dt = slope = -150/3 = -50

answer: 204

step-by-step explanation:

we are told that the revenue is

x⋅(4080−10x)=−10x^2+4080x

this is a quadratic function, so to maximize it we should find the x-value of its vertex. recall that the x-value of the vertex of the parabola ax^2+bx+c is given by the formula −b/2a.

so in this case, we have a=−10 and b=4080, so the x-value of the vertex is

−b/2a= −(4080)/2(−10)=204