Investment Earnings An investor calculated these

Chapter 3, Problem 6RE

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QUESTION:

Investment Earnings An investor calculated these percentages of each of three stock investments with payoffs as shown. Find the average payoff. Use the weighted mean. (3–1)

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QUESTION:

Investment Earnings An investor calculated these percentages of each of three stock investments with payoffs as shown. Find the average payoff. Use the weighted mean. (3–1)

ANSWER:

Step 1 of 2  

 The given data is

           

Stock

Percent

Payoff

A

30%

$10,000

B

50%

3,000

C

20%

1,000

 Here we need to find the average payoff.

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