QUESTION TWO By investing in a particular product for one year, an investor hopes to make a profit of $100, $400, $500 o

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Question Two By Investing In A Particular Product For One Year An Investor Hopes To Make A Profit Of 100 400 500 O 1 (14.77 KiB) Viewed 39 times

QUESTION TWO By investing in a particular product for one year, an investor hopes to make a profit of $100, $400, $500 or $1,000 with probabilities 0.4, k, 2k or 0.12 respectively as shown below: Profit (X) P(X=x) 100 0.4 400 k a) Calculate the value of k Page 1 of 2 500 2k b) Find the expected earnings of the profits c) Calculate the standard deviation of the profits. d) Hence or otherwise, is the investment likely to be successful? Explain. 1,000 0.12