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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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