199k views
4 votes
Use the histogram of investment account values to answer the question. What percentage of investments have a value over 150?

1) Less than 10%
2) Between 10% and 20%
3) Between 20% and 30%
4) More than 30%

1 Answer

2 votes

Final answer:

Without the specific histogram provided in the student's question, it's impossible to accurately calculate the percentage of investments with a value over 150. Instead, the discussion shifted to the concept of expected values and the relationship between investment risk and return.

Step-by-step explanation:

Given the student's question about histograms and the percentage of investments with a value over 150, it's clear they are working on a statistics problem involving data interpretation. Unfortunately, the question does not provide the specific histogram data required to calculate the percentage. In general, to answer such a question, you would count the number of investments over 150 and divide by the total number of investments, then convert this fraction to a percentage. However, without the specific histogram, we cannot provide a direct answer here. Instead, we can look into another part of the question related to investment decision making and risk assessment.

In scenarios involving probability and finance, you can determine the safest and riskiest investments by analyzing the probabilities and potential returns. For example, when considering the expected value of an investment, you would multiply each outcome by its probability and sum those products. The safest investment could be considered the one with the lowest probability of loss and a reasonable expected return, while the riskiest might have a high potential return but also a high chance of losing the initial investment.

Theoretically, higher risk can lead to higher returns, but it can also lead to larger losses. It is not a rule that high risk will always result in low returns. Investments like stocks typically have higher average returns compared to bonds or savings accounts, due to their higher risk. Understanding the relationship between risk and return is an important part of financial literacy and investment education.

User Drsealks
by
7.0k points