Expected value of a loss - probability - statistics
Not what you're looking for?
Suppose the losses due to exchange rate fluctuation to XYZ Inc have the following distribution
$2,000,000 with probability of 0.05
$1,000,000 with probability of 0.08
Loss = $ 800,000 with probability of 0.15
$ 20,000 with probability of 0.12
$ 0 with probability of 0.60
What is the expected value of loss due to exchange rate change?
Purchase this Solution
Solution Summary
This solution provides the computations in excel to provide the student with a template for future problems.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.