ScantronAssignment3-R07

ScantronAssignment3-R07 - MGMT 3100 HOMEWORK ASSIGNMENT#3...

This preview shows pages 1–2. Sign up to view the full content.

MGMT 3100 HOMEWORK ASSIGNMENT #3 NOTE1: Questions 1-50 = 4 points each, Questions 51-100 = 13 points each NOTE3: YOU ONLY NEED TO TURN IN YOUR SCANTRONS FOR THIS ONE PROBLEM 1 (harder) You invested \$10,000 in a certain stock on January 1 st , 2007. By examining past movements of this stock and checking up with your broker, you estimated that the annual return for the stock (call it X and express it as a percentage), is normally distributed with mean = 10% and standard deviation 4%. On December 31 st , 2007, your investment will have grown to \$10,000(1 + X) and you will sell the stock. Because you are in the 33% bracket (I’m assuming you guys have money), you will owe the IRS 33% of this profit. **Question 51. What is the approximate probability that you will have to pay the IRS at least \$400? a) 0% b) 70.2% c) 29.8% d) 33% e) none of the above *Question 1. What is the lowest approximate rate of return (X), which you are 90% sure you will NOT make? a) 0% b) 15.13% c) 10% d) 14% e) none of the above **Question 52. What is the lowest approximate after tax profit (in \$) which you are 90% sure you will NOT exceed? a) \$1513 b) \$1000 c) \$1013 d) \$600 e) none of the above PROBLEM 2 The Fabulous Fabrics Company runs a manufacturing facility that produces bolts of woolen fabric. A certain amount of other fibers are also woven into the wool. The proportion of those other fibers

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

This homework help was uploaded on 04/17/2008 for the course MGMT 3100 taught by Professor Camateros during the Winter '08 term at CSU East Bay.

Page1 / 3

ScantronAssignment3-R07 - MGMT 3100 HOMEWORK ASSIGNMENT#3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online