Tom's utility of wealth function is given by the following quadratic function.: U(x)=−0.5(x−5)2, for x≤5.

Tom must invest his wealth x in 2 independent risky assets, A and B. Asset A has an expected value of μA =2 and variance σA2 =1. Asset B has an expected value of μB =3 and a variance σB =3. Tom wants to maximize his expected utility.

a. What is Tom's expected utility if he invests only in Asset A or if he only invests in Asset B?

b. Which fraction k of his wealth should Tom optimally invest in Asset A (also, which fraction 1 − α in Asset B)? Then, what is his expected utility?

Answers

Answer 1

a. Tom's expected utility is -2

b.Tom's expected utility if he invests 25% of his wealth in Asset A and 75% of his wealth in Asset B is -3.625.

a. Tom's expected utility if he invests only in Asset A is 2.5, and if he invests only in Asset B, it is 4.75. To find Tom's expected utility for each asset, we can plug in the expected values for each asset into Tom's utility function, as follows:U_A = -0.5(2 - 5)² = -4.5U_B = -0.5(3 - 5)² = -2

b. To find the fraction k of his wealth that Tom should invest in Asset A and the fraction 1 - k that he should invest in Asset B, we can use the formula:k = σB²/(σA² + σB²) = 3/4 = 0.75So Tom should invest 75% of his wealth in Asset B and 25% of his wealth in Asset A.

To find his expected utility, we can use the following formula:EU = kU_A + (1 - k)U_BEU = 0.75(-4.5) + 0.25(-2) = -3.625

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Related Questions

The annual inventory cost C for a manufacturer is given befow, where Q is the order size when the inventery is replenished, Find the change in annual cost when Q is increased from 354 to 355 , and compare this with the instantaneous rate of change when Q=354, (Round your answers to two decimal piaces.) C= 1,007,000/Q+5.6Q Change in C= C(354)=

Answers

The change in annual cost when Q is increased from 354 to 355 is [provide the numerical answer].

When analyzing the change in annual cost, we can start by calculating the value of C when Q is equal to 354. Plugging Q = 354 into the given formula for the annual inventory cost C, we can compute the value as follows:

C(354) = 1,007,000/354 + 5.6 * 354

To determine the change in C when Q is increased to 355, we need to calculate the new value of C. Plugging Q = 355 into the formula, we have:

C(355) = 1,007,000/355 + 5.6 * 355

By subtracting the initial value of C (C(354)) from the new value of C (C(355)), we can find the change in annual cost. This provides us with the desired answer.

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FIRST ANSWER GETS BRAINLIEST!!!!!!!

Bob has decided to start Investing. After dong his research, he has decided he wants to Invest in a safe Invest with guaranteed return. He Is going to buy

Shares

Mutual funds

Bonds

Answers

I would say bond. Bob would most likely going to buy bonds. Bonds are known to be very safe however it has low return.

Answer:

bonds

Explanation:

8) How can using a credit card affect your credit score in a good way? In a bad way?

Answers

Answer:

Explanation:

Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively

Bad way: paying your balances late or not at all is bad for your credit.

1. The formula for continuously compounded interest is A = Pe^rt, where A is the amount of money in the account, P is the initial investment, r is the interest rate, and t is the time in years. Using the formula, determine, to the nearest dollar, the amount in the account after 8 years if $750 is invested at an annual rate of 3%​

Answers

Answer:

the  amount in the account after 8 years is $954

Explanation:

The computation of the amount in the account after 8 years is shown below"

Given that

The formula for continuously compound interest is

Amount = Principal e^(rate) (time period)

= $750 × e^(0.03)(8)

= $954

Hence, the  amount in the account after 8 years is $954

The same is to be considered by applying the above formula

identify ten entrepreneur and classify them under the types of entrepreneur​

Answers

Answer: There are only five types of entrepenuer...

1. Skeptical entreprenuer: Sees the success of others and questions it.

2. Copycat entreprenuer: Sees the success of others and copys them exactly.

3. Research entrepreneur: They research every possible scenario and outcome for strategies to start or grow a business...

4. The determined entrepreneur: - hasn't made it yet- but will.

5. The accolmplished entrepreneur: Has gone through all types of entrepreneur and has built success from it.

Explanation: Hope this helps!

A pharmaceutical company tested a new prescription weight loss pill by randomly splitting 9000 adult volunteers into two groups. One group was given the pull, whereas the other group was given a placebo. After three months, the adults who took the pill reported an average weight loss of 19 pounds, while those who took the placebo experienced no significant change in weight, on average. the company concluded their new weight loss pull is effective.
a)Was a study a randomized comparative experiment?
b) What was the treatment? The weight loss pill? The placebo? Was there no
treatment, because it was not a
randomized comparative experiment?
c) What was the treatment and control groups?
d) Is the Company's conclusion valid?

Answers

a) Yes, the study was a randomized comparative experiment. b) The treatment was the weight loss pill, and the placebo served as a control. c) The treatment group consisted of the volunteers who took the weight loss pill, while the control group comprised those who took the placebo.

d) Based on the given information, the company's conclusion appears to be valid.

a) The study can be considered a randomized comparative experiment because the participants were randomly split into two groups: one receiving the weight loss pill and the other receiving the placebo. This random assignment helps minimize bias and allows for a more valid comparison between the two groups.

b) The treatment in this study was the weight loss pill, which was administered to one of the groups. The placebo, which is an inert substance with no therapeutic effect, served as a control. It is common in such studies to compare the effects of a treatment against a placebo to determine its effectiveness.

c) The treatment group consisted of the 9000 volunteers who took the weight loss pill, while the control group consisted of the volunteers who took the placebo. By comparing the outcomes between these two groups, the effectiveness of the weight loss pill can be assessed.

d) Based on the information provided, the company's conclusion that their weight loss pill is effective appears to be valid. The average weight loss of 19 pounds reported by the treatment group suggests a positive impact of the weight loss pill, as opposed to the control group where there was no significant change in weight on average. However, it's important to note that additional factors, such as potential side effects or long-term effects, should also be considered before drawing definitive conclusions.

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which assest is the least liquid

Answers

Answer:

Land, real estate, or buildings are considered among the least liquid assets because it could take weeks or months to sell them.

what is the name of the eller department which has career coaches available to you to talk about your career goals and help you achieve them?

Answers

A group of career counselors with backgrounds in the professional industry work with students in the Eller College of Management's Professional Development Center to help them in their job searches.

A professional development coach is what?

Experts in career guidance, résumé writing, interviewing, and negotiation are career coaches. While you might only look for a new job or change careers sometimes throughout your life, these specialists are always assisting job searchers, so they are aware of the most recent hiring procedures.

What distinguishes a career coach from a career advisor?

Career coaches put an emphasis on the present and frequently develop action goals to advance. Career counselors, in contrast hand, could search for previous experiences or obstacles that might be causing the challenge.

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give 5 numbers smaller than -2 and 5 numbers bigger than -2​

Answers

smaller: -3, -4, -5, -6, -7.
bigger: -1, 0, 1, 2, 3

What is an example of global dependency?

Answers

One example of global dependency is the dependence of many countries on oil imports from the Middle East.

Many economies rely heavily on the oil industry and therefore rely heavily on the countries that produce and export large amounts of oil. This dependence can have a significant impact on the global economy, as well as on the political and social dynamics of the countries involved.

For example, a disruption in oil production or exports from the Middle East can lead to major economic downturns and political instability in other countries that rely on those imports.

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Which of the following is not an example of professional behavior
?

Answers

What are the answers?

Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of a book d. a rock concert held in a small auditorium

Answers

Answer:

b. a radio broadcast

Explanation:

The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all

Therefore as per the given options, the option b is correct

hence, the other options are incorrect

In what ways does government typically intervene in the economy?

Answers

Governments can exercise power in the market in numerous ways. Typical techniques include:  tax policy, Financial markets, and safeguard consumers, etc.

Governments can use tax policy to affect the economy by changing taxes and expenditure levels. Financial markets: Banks can use money supply to impact the economy by altering interest rates and now the money supply.

Policy: Governments can regulate many markets to achieve optimal competition and safeguard consumers. Governments can give firms and sectors subsidies to encourage development of the economy.

Public goods and services: To encourage economic development and social welfare, governments might offer public goods and services like infrastructure and education. Governments can safeguard home businesses and advance international commerce by enacting trade regulations like tariffs and quotas.

Government control of the economy can use both beneficial and bad consequences overall. It is crucial for decision-makers to thoroughly assess the possible effects of their decisions and work towards a balanced strategy that fosters both social welfare and economic growth.

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Sorge Ltd are reviewing the selling prices of one of their products. It currently sells for £200 per unit and generates an annual demand of 1,000 units. Sorge Ltd have undertaken some market research and believe that for every £10 increase in selling price, demand will fall by 20 units. The variable cost of production of one unit of the product has been forecast to be £150.
Required: Determine the profit maximising selling price and quantity.

Answers

The profit-maximizing selling price and quantity would remain as £200 per unit and 1,000 units, respectively.

To determine the profit-maximizing selling price and quantity, we need to analyze the relationship between selling price, demand, and the variable cost of production. The profit can be calculated as the difference between total revenue and total cost.

- Current selling price: £200 per unit

- Annual demand: 1,000 units

- Price elasticity of demand: For every £10 increase in selling price, demand falls by 20 units.

- Variable cost of production per unit: £150

To find the profit-maximizing selling price and quantity, follow these steps:

1. Calculate the current total revenue:

  Total Revenue = Selling Price * Quantity

  Total Revenue = £200 * 1,000 = £200,000

2. Calculate the current total cost:

  Total Cost = Variable Cost per Unit * Quantity

  Total Cost = £150 * 1,000 = £150,000

3. Calculate the current profit:

  Profit = Total Revenue - Total Cost

  Profit = £200,000 - £150,000 = £50,000

4. Determine the price elasticity of demand:

  Price Elasticity of Demand = (% change in quantity) / (% change in price)

  Given: For every £10 increase in selling price, demand falls by 20 units.

  Price Elasticity of Demand = -20 / (10/200) = -40

5. Set up the profit function in terms of the selling price and quantity:

  Profit = (Selling Price - Variable Cost per Unit) * Quantity

6. Differentiate the profit function with respect to the selling price and set it to zero to find the profit-maximizing selling price:

  d(Profit) / d(Selling Price) = Quantity - Price Elasticity of Demand * Quantity - Variable Cost per Unit = 0

  Quantity - 40 * Quantity - £150 = 0

  -39 * Quantity = £150

  Quantity = £150 / -39 ≈ 3.85

7. Calculate the profit-maximizing selling price:

  Selling Price = Variable Cost per Unit + (Price Elasticity of Demand * Quantity)

  Selling Price = £150 + (-40 * 3.85) ≈ £-8.50 (negative price)

Given the negative result for the selling price, it suggests that the current price of £200 per unit is already at the profit-maximizing level. Therefore, the profit-maximizing selling price and quantity would remain as £200 per unit and 1,000 units, respectively.

Please note that this analysis assumes a linear relationship between price and demand and does not consider other factors that may influence demand and pricing decisions in real-world scenarios.

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How to raise money fast

Answers

Answer:

Ibenta ang kidney charot HAHAHHAHAHAHA

if a person attempts to make a phone call while they are waiting for a meeting to begin, they are________
a. combining tasks
b. multitasking
c. sequential tasking
d. cleaving tasks

Answers

multi tasking! B i hope this helps
B or it’s a there’s no wrong answer !

Which of the following is a standard that defines how accountants record
financial transactions?
O A. generally accepted accounting principles
OB. government allowed accounting practices
OC. government applied accounting practices
O D. general accounting and auditing procedures

Answers

Generally accepted accounting principles.

What is a financial transaction?

An agreement or communication between a buyer and a seller to trade products, services, or assets in exchange for money is a financial transaction.

A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB). When their accountants put together a public company's financial statements, they must adhere to GAAP in the United States.

Ten basic principles serve as the framework for GAAP, which is a set of regulations. The International Financial Reporting Standards (IFRS), which are seen as more of a principles-based norm, are frequently used as a comparison. There have recently been initiatives to move GAAP reporting to IFRS because it is a more global standard.

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Tell me 3 characteristics of money? ​

Answers

1.) durability

2.) acceptability

3.) scarcity

4.) portability

5.)divisibility

6.)uniformity

choose any three u want! :)

Characteristics of Money.

Answer:

(a) Divisibility

(b) Limited supply

(c) Durability

More:

(d) Portability

(e) Acceptability

(f) Uniformity

These are the characteristics of money.

Hope it helps!!Please mark me as the brainliest!!!

Thanks!!!!

Which trim level is available exclusively for customers who participate in the 2023 ariya reservation program?.

Answers

Customers who take part in the reservation program are the only ones who can purchase the front-wheel-drive Ariya Premiere.

What is trim level?

Manufacturers utilize trim levels to specify a vehicle's degree of equipment or unique characteristics. A vehicle's features and equipment are also determined by any option packages or individual options that were included in the order for the vehicle.

It comes with lighted Premiere kick plates, a Premiere grade badge, and 19-inch aluminum-alloy wheels with special aero wheel cover paint treatment.

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What is a project schedule? Why is it needed? what is its purpose? Please use practical examples in your explanation.

Answers

A project schedule is a detailed timeline that outlines the start and end dates of specific tasks and activities within a project. It is essential for managing and tracking progress, coordinating resources, and ensuring timely completion of project deliverables.

A project schedule serves as a roadmap that defines the sequence and duration of activities required to complete a project. It outlines the start and end dates for each task, milestones, and dependencies between activities. The purpose of a project schedule is to provide a clear and structured plan that helps project managers and team members understand what needs to be done, when it needs to be done, and who is responsible for each task. For example, in a construction project, a project schedule would include tasks such as site preparation, foundation construction, framing, electrical and plumbing installations, interior finishes, and final inspections. Each task would have an estimated start and end date, allowing the project team to coordinate resources, allocate manpower, and track progress.

The schedule helps ensure that different activities are properly sequenced, dependencies are accounted for, and deadlines are met. In another practical example, a software development project schedule would include tasks like requirements gathering, design, coding, testing, and deployment. By establishing a project schedule, the team can allocate resources, set development milestones, and track progress. The schedule enables the team to identify potential bottlenecks or delays, adjust timelines as needed, and manage client expectations regarding project delivery. Overall, a project schedule is vital for effective project management, as it provides a structured timeline, facilitates resource allocation, helps identify dependencies and critical paths, and enables timely completion of project objectives.

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stephanie is a participant at an assessment center and has been asked to assume she is a customer service manager and needs to handle a call from an irate customer. which type of exercise is stephanie participating in?

Answers

Stephanie is participating in role play.

The shifting of one's conduct to take a position, either intuitively to fill a social role or purposefully to carry out an acquired character, is known as role-playing.Provide pupils with real-world experiences to help them learn. Learn how to employ real-world skills (negotiation, debate, teamwork, cooperation, persuasion) Make opportunities for critical peer observation available.Illiterate, Semi-Literate, Literate, and Advanced Literate are the four varieties of roleplay. Roleplaying is similar to making up a tale with two or more individuals. The only difference is that you utilize one character instead of describing all of them. Roleplaying improves your writing abilities and creativity!The goal of role playing is to acquire, enhance, or build skills or competences required for a given employment.

Thus this is the meaning of role play.

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Which of the following describes occupational safety?

looking at the way people do their work to find where improvements can be made
comparing data from different time periods within the same organization
employee health and safety in a workplace or on a job site
codes that describe a strict set of rules and procedures

Answers

employee health and safety in a workplace or on a job site

What do you think Anielski means by the phrase
"a depletion of the social capital upon which an
economy depends"? Do you agree with him?

Answers

Answer: yes I agree the him

Explanation:

The impact of Furman v. Georgia (1972) was that states had to

promise to use the death penalty only with approval from the Supreme Court.
throw out the old Miranda warning and write a new one.
agree to throw out all state laws regarding crime and impose national standards.
create clear standards to be applied fairly before imposing the death penalty.

Answers

Answer:  D.create clear standards to be applied fairly before imposing the death penalty.

Explanation: The answer it's right there

The impact of  Furman v. Georgia (1972) was that states had to

create clear standards to be applied fairly before imposing the death penalty.

The Furman v. Georgia case

This was a case that had to do with the cruel and the unusual way that people faced in the death penalty.

The case ruled that the death penalty was unconstitutional if it was applied in a discriminatory way.

It ruled that the eight amendment was being violated if used in this way.

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Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).

Cain Company reports net cash provided by operating activities of $35,000. It also reports the following

Answers

It can be seen from the solutions given that Cain's net income is $24,000.

Here is the solution:

Net income = Net cash provided by operating activities - Adjustments

= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000

= $24,000

Therefore, Cain's net income is $24,000.

Here is a breakdown of the adjustments:

To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.

A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.

The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.

A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.

A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.

A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.

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multiple choice-- economics

You are interested in becoming a business owner. You want the freedom to be your own boss but do not want to deal with all of the stress that comes with starting a new business. What type of business ownership makes the most sense for you? >>

Partnership

Franchise

Corporation

Sole proprietorship

Answers

Answer:

A partnership.

Explanation:

In a partnership you are a part owner of a business, but you share responsibility.

When a firm uses cross-docking inventory: a. is considered short movement freight b. typically moves directly from receiving to shipping** c. always is tagged for shipping d. must be staged for shipping

Answers

When a firm uses cross-docking inventory typically moves directly from receiving to shipping.

What is cross docking?

A technology called cross docking practically removes the need to keep inventory. When goods are transported to a warehouse, they are promptly sorted and prepped for shipping; frequently, they are reloaded onto other trucks parked at the same warehouse.

What is a cross-docking system?

Cross-docking is a lean supply chain model that entails the quicker or more immediate transfer of finished goods from manufacturers or suppliers to consumers or retailers with little to no handling or storage (for instance, stopping a truck at a distribution centre to load it onto another truck without storing the inventory).

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Mary is a stay-at-home mother whose husband died. She has two small
children to care for, and her husband was the primary wage earner for their
family. What Social Security benefits would care for Mary and her children?
A) retirement benefits
B) disability benefits
C) survivor’s benefits
D) worker’s compensation

Answers

Answer:

The answer that I think would be correct is option C (survivors benefits)

Explanation:

Retirement benefits definition: a form of social insurance payment made by the US Social Security (for age 62 and older) considering that Mary has two small kids, she probably isn't that old.

Disability benefits: in order to be eligible, you have to be unable to do regular or customary work for at least right days. Considering the fact that Mary is a stay at home mother then she wouldn't be employed.

Survivors benefit: this allows a retiree to ensure after death, a continuous lifetime annuity for their dependents.

Workers compensation: provision of benefits to employees who suffered work related injuries. Mary's husband most likely didn't die in the work place.

When completing talent inventories for current employees, HR is interested in knowing more about their current employees, so if the time arrives they can replace the individual who not only meets the job specification, but also has the same traits as the previous employee. This is known as the ________ approach to performance management.

Answers

Answer:

attribute

Explanation:

Since it is mentioned in the question that after completing the talent inventories HR is interested in knowing more about the current employees in order to replace an individual in case it is needed.

Also, an individual should have the same traits, attributes, or characteristics as the previous employee had. As this approach derives the employees characteristics along with the job specification

So this approch we are known as an attribute for management performance

Select all the correct answer.
What type of factor of production is a bulldozer?
Oland
O labor
O capital
O entrepreneur

Answers

Answer:

capital

Explanation:

bulldozer is bought with capital.

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