HW5 Roulette - RyanScarff QMETH201 SectionAD(Raghav)...

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Ryan Scarff QMETH 201 Section AD (Raghav) February 24th, 2010 #5 Roulette $1 on 4 numbers for every bets Bets 30 times Gain Prob. Product SUM OF Products (x -μ)^2 (x -μ)^2(Prob.) 8 0.11 0.84 -0.05 5.49 0.58 -1 0.89 -0.89 0.37 0.33 0.91 Expected Gain: -1.5 Standard Dev= 0.95 Portfolio Return Expected return: .75*.0028+.25*.0090 0 Usual Measure of Risk: (.75^2*.0751^2+.25^2*.1513^2+2*.580*.0751*.1513)^.5 0.13 P22 mean: 135,000 STD: 6000 A 50% B (130000-135000)/6000= -0.83 z= 0.2 1-.2033= 0.8 prob==
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This note was uploaded on 03/15/2010 for the course QMETH 201 taught by Professor Faaland during the Spring '08 term at University of Washington.

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HW5 Roulette - RyanScarff QMETH201 SectionAD(Raghav)...

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