Question

An investment advisor believes that there is a 30% chance of making money by investing in...

An investment advisor believes that there is a 30% chance of making money by investing in a specific stock. If the stock makes money, then there is a 52% chance that among those making money, they would also get a dividend. Find the probability that the investor makes money and receive a dividend.

15%
16%
30%
52%

Homework Answers

Answer #1

Let event = Making money by investing

Event = Receiving dividend

Not receiving the dividend

The probability of making money by investing =

Given that the stock makes money, the probability of receiving dividends

=

Hence,

The probability that the investor makes money and does not receive a dividend:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investor is considering making an investment into a stock which has a beta of 1.6...
An investor is considering making an investment into a stock which has a beta of 1.6 and an expected return of 13%. The investor is a rational and risk averse person who likes to diversify if there are other assets available for investing. Currently, there is a risk-free asset available for investing with a 2% return. The investor has $1,000 available for investing purposes. (a) (If investor invests $150 into the risk-free asset and $850 into the risky stock, what...
Investment advisors recommend risk reduction through international diversification. International investing allows you to take advantage of...
Investment advisors recommend risk reduction through international diversification. International investing allows you to take advantage of the potential for growth in foreign economies, particularly in emerging markets. Janice Wong is considering investment in either Europe or Asia. She has studied these markets and believes that both markets will be influenced by the U.S. economy, which has a 16% chance for being good, a 47% chance for being fair, and a 37% chance for being poor. Probability distributions of the returns...
We have the chance of investing $150,000 today, and have immediate access to a new shopping...
We have the chance of investing $150,000 today, and have immediate access to a new shopping center in Long Island that promises to be a good deal. You can rent that shopping center for $10,000 this year. Next year (and forever after that) it can either go up to $15,000, or if your competitor buys the mall next door the rent will go down to $5,000. The cost of managing the property is negligible once we make the investment. The...
You are a financial advisor who offers investment advice to your clients. There are two risky...
You are a financial advisor who offers investment advice to your clients. There are two risky assets in the market: portfolio X and portfolio Y. X has an expected return of 15% and standard deviation of 35%. The expected return and standard deviation for Y is 20% and 45% respectively. The correlation between the two portfolios is 0.2. The rate of risk-free asset, T-bill, is 5%. a) Peter is one of your clients and he can only invest in T-bill...
what is your comment and thought for this paragraph? Making money has always been important to...
what is your comment and thought for this paragraph? Making money has always been important to me. However, so has my happiness with my job. When I first moved to LA it was hard to find a job but I refused to work in food service. I did it in high school and absolutely hated it. I did everything I could to find a job that I would be happy doing even if it wasn’t my dream career yet. I...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills,...
Answer the following questions as detailed as possible: Question #1 – Time Value of Money Please...
Answer the following questions as detailed as possible: Question #1 – Time Value of Money Please give a detailed example from your own personal or professional experiences (life/career) that involves the Time Value of Money. The Time Value of Money defined as in Chapter 4 as: Present Value, Future Value, Present Value of an Annuity, Future Value of an Annuity, Amortization. It can be one of these above or multiple. Explain the example and how this/these money valuation tools fit...
Answer the following questions as detailed as possible: Question #1 – Time Value of Money Please...
Answer the following questions as detailed as possible: Question #1 – Time Value of Money Please give an example from your own personal or professional experiences (life/career) that involves the Time Value of Money. The Time Value of Money defined as in Chapter 4 as: Present Value, Future Value, Present Value of an Annuity, Future Value of an Annuity, Amortization. It can be one of these above or multiple. Explain the example and how this/these money valuation tools fit into...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills, online shopping, coffees, vouchers, food,...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills, online shopping, coffees, vouchers, food,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT