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Wealta

The. ouoa o ex Qet ed Vale

Sobstiboting the q?ven Uadu


w) 0.3.\D00ooot .2000 bo0t 0.S.

E W) = 30Oo00t 8o00oDt90o 000

3ote ecpedred value weh 200D 00 o


6) To delenue
a isk seel ers ,we
anoly2e he shape

Concawe tucios,

) The textoluty eguiv eut Cct) Hhe cuont


cerhoin wedt Hhat gives he saue
He expe. ct es F
ssey prospect.

E V) 0.3.Uo oo000t 0.4 U2 0000 o0 +


O.34 Ú3000o o
EU)0.34000+ 0..141.2lt o.3.l73205
EU) Soot 545.68t S14.62
E (U) 385.3D

The Cento?aty ezuiualat CE S tooud bu setti

VeE 385.3o
0385.30
CE |419,462
So,Avwind shonwals certaR uby equi, Jut tor Hhe

2. Moh aul

Prospe ct Pl: (0.7,209 boo)


E(U)- 0.7 lu (200) + D.3 +ln lboo)
EU) = D.7 ln l2o) t O.3 ulooo)
EUW D.7.S.24 Y317t o3.636430
E(U)> 3.70372t |-4I9 074
E(U)> S.6274 0|
Prospect P3:(0.5 4009 2o00)

0s.1.6O0902
EU)> D.5.8.2940SD t
E (U) u.iy7025 + 3. gO04(
ECU) 1.4 7476
b) Cestalty £4iv alent t ospect P3
Fox losect 3,wehawe
lu CE) 7. q 17176
CE e 7.917 476
CE N2, 824
So, Hhe cetouty ezoivaat o rose ect P3

3 ol en l'.
Opliou A;

" 2100 with obabity o.b6

2400 with coxteiuty


Problea 2i
Opbi on e
033
2500 with po be biit
probabi Rty O. 67
0.66

b. Bea al the. stoc


We Pues CA PM equaiou boad th e bet
Hhe. stocll.
CAPnoa- aected eln on stocl (2c)=2ialR
-Fee ratefR+ Beta Ces- 2A)
Beta (Rs-R)/Rn-Re)
Beta(1s /.-q)/(12/.-41)
Bet 6/-/3/.
Beta 2 .0
The beta a the stak ls 2. o
He Hoshet Poxt olio.
Soluug or eN4.

Ln q . tl.s C6)
got he
given 3
hodiad shinon iobastliy
Hhat Hhe tore,Seriousl
There
B.4c/G/1) PcsIn)
sin)LPCALS)*PLS)]/
PCe)
got qiveasevioudy
he Stodytu
)=Polsabliy out- iud to eed
CS) P
3/
Seriody stg v'en
Evet S
Let
seyioundy Stodyag Slivvan
Podeos
This
hobab?lty af aeen Cab
auothor pplac alio
a Eveul a Hae Ce beug Teen
Evee

Poha)2/10

(90/100)]
?(aIs)-(0.b/ (o.os t O.13)
p Ca13)0.307 3o.7-)

Therctote, Hhe postenior probabtl:ty thet he

13 aprocimately .7/.
t0. hoalbilly o Disede Gt ven Postive. Tot

T~ Event af estug posstec,


"PCo) 0.0|
peTh 0.05
Po)- eoro. o)/o.11oo) t(0.cs
pCom) D.0097 /O.oo7 t o.0115) (O.9)7
P Co> 6. 0097 /C0.0 o47+ 0.0195)

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