1. You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.21 and a T-bill with a rate of return of 0.045.
A portfolio that has an expected outcome of $114 is formed by
A. Investing $80 in the risky asset and $20 in the risk-free asset.
B. Bborrowing $46 at the risk-free rate and investing the total amount ($146) in the risky asset.
C. Such a portfolio cannot be formed.
D. Investing $100 in the risky asset.
E. Investing $43 in the risky asset and $57 in the risk-free asset.
2. Based on a random sample comma it was concluded that the average cost of a hotel room in City Upper ABased on a random sample, it was concluded that the average cost of a hotel room in City A was $ 189.99 for a single night.was $189.99 for a single night. Is the above an example of descriptive or inferential? statistics?
A. It is descriptive statistics because it uses a sample to make a claim about a population.
B. It is descriptivedescriptive statistics because it summarizes the information in a sample.summarizes the information in a sample. nothing
C. It is inferential statistics because it summarizes the information in a sample.
D. It is inferentialinferential statistics because it uses a sample to make a claim about auses a sample to make a claim about a population.