Business, 30.03.2021 05:40 Bidboidipper

I am a rational and risk-averse person, and I have an option of making the following bet: I receive $500 cash, after which I roll a normal 6-sided die. Whatever I roll, I must pay $200 times the value of the roll of the die (so if make the bet and roll a ‘2’, I get $500, then have to pay out $400, thus I win $100 in total). 10. If my goal is to maximize my personal utility, should I accept this bet, and does my exact level risk aversion affect whether or not I should accept the bet? I should accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does matter There is not enough information to determine whether I should accept the bet or not; the precise level of my risk aversion does matter

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:20

Kahn company's static budget was based on sales volume of 12,000 units. its flexible budget was based on sales volume of 14,000 units. based on this information multiple choice the sales volume variance is expected to be unfavorable. the materials cost volume variance is expected to be favorable. the labor cost volume variance is expected to be unfavorable. none of the answers is correct.

Answers: 3

Answer

Business, 22.06.2019 17:00

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Answers: 2

Answer

Business, 22.06.2019 20:40

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i.e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant.a. the division's basic earning power ratio is above the average of other firms in its industry.b. the division's total assets turnover ratio is below the average for other firms in its industry.c. the division's debt ratio is above the average for other firms in the industry.d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.

Answers: 1

Answer

Business, 23.06.2019 11:10

Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. danielle earns $55,000 per year and is in the 28 percent tax category. what annual tax savings does she get from her contribution? if her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar, how much will her employer put into her account this year?

Answers: 2

Answer

You know the right answer?

I am a rational and risk-averse person, and I have an option of making the following bet: I receive...

Questions