worksheet6 - more detailed life table 3(extra Suppose you...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
MA 1002 Worksheet 6 Due Date: October 21, 2009 Print Name: Signature: ID #: Instructor/Section: Instructions: Explain each step using the conventions from class. Please mark solutions clearly. You will not receive full credit for a correct answer without explanation. 1. (50 points) Solve the following linear programming problem graphically: You have 12,000 to invest and three different assets to choose from. A bond has a fixed 7% return, a CD has 8% return, and a mutual fund 12% projected return. To minimize your risk, you decide not to invest any more than $2,000 in the mutual fund. You need to invest at least three times as much in the bond as in the CD for tax considerations. What is the optimal way to invest in the three assets? You can check your result by using the “Solver”-tool in Excel. 2. (50 points) Answer the life table questions from the class handout using the attached,
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: more detailed life table 3. (extra) Suppose you are standing at an intersection in Manhattan, and you want to go home. But temporarily, you have forgotten where you are, and so you try to perform a random walk: With equal probability, you start walking north, west, south, or east to the next intersection. However, you are not that much lost that you forget from where you came, so if you decide to go north in one step, in the next step you will only go north, east or west, but not back south. (a) Simulate a few random walks of length 10. Measure the distance from the starting point. (b) How many diFerent random walks of length n are there? (c) Can you nd an estimate for the average distance from the starting point with a random walk of length n ? (d) Do you think you will ever get home? Please bring a computer to class next Wednesday!!!...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern