A Chemical Company Needs to Paint Fifty Chemical Tanks Including

question 28

Multiple Choice

A chemical company needs to paint fifty chemical tanks including the top and the bottom of the tanks. Each tank has a height of 10 ft and a diameter of 6 ft. Paint can be purchased in 1-gallon cans or in 5-gallon cans that cost the same as 4 1-gallon cans. Each gallon of paint will cover 350 square feet. How many of each should be purchased to keep the cost of painting the tanks as low as possible? Use 3.14 for .

• A) 8 5-gallon cans and 1 1-gallon can
• B) 7 5-gallon cans and 0 1-gallon cans
• C) 8 5-gallon cans and 0 1-gallon cans
• D) 7 5-gallon cans and 1 1-gallon can

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Definitions:

Variance of Returns

A statistical measure that captures the dispersion or spread of an asset's returns around its mean or average return.

Arbitrage Opportunity

The opportunity to purchase a financial instrument at a reduced cost in one marketplace and sell it at an elevated price in a different marketplace to capitalize on the discrepancy between the two prices.

Risk-Free Rate

The theoretical return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Expected Return

The weighted average of all possible returns for an investment, taking into account the probabilities of each outcome, and a key concept in portfolio management and capital budgeting.