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Q: Assignment due by 10:30 PM EST tonight FINANCE ( No Answer,   0 Comments )
Question  
Subject: Assignment due by 10:30 PM EST tonight FINANCE
Category: Business and Money > Finance
Asked by: inahurry-ga
List Price: $15.00
Posted: 27 Mar 2005 13:22 PST
Expires: 27 Mar 2005 17:50 PST
Question ID: 501110
The College Shop is in the process of purchasing a new high-tech
copier-scanner-fax machine.  In their search they have gathered the
following information concerning two possible copiers, A and B
	               A	      B
 		
Initial Investment  $10,000	   $10,000
Annual rate of return 		 	
	       Return	Prob.	Return	Prob.     
Pessimistic	11%	0.30	9%	0.30
Most Likely	18	0.45	18	  0.45  
Optimistic	22	0.25	25	0.25

a.	Compute expected rate of return for each copier.
b.	Compute variance and standard deviation of rate of return for each copier.
c.	Which copier should they purchase?
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