Probability of tripling her investment

Assignment Help Business Management
Reference no: EM131239047

An investor is considering two alternatives for which she has Rs. 1,00,000 to invest. The first is commercial property; the second is stocks. Analysis has revealed that the property alternative offers a 0.50 probability of tripling her investment and a .30 probability of losing 60% of the entire amount and a 0.20 probability of make it half. The stock alternative has a .30 probability of making the investment double and .50 probability of remain the same value and .20 probability of losing 75% of the investment. her choices are (1) invest the entire amount in one or the other; (2) invest half her fund in one and remaining half in other and (3) make no investment. Suggest the investment plan which will maximize her utility?

Reference no: EM131239047

Questions Cloud

The advertising campaign makes foreigners demand : What would be the e¤ect of an advertising campaign to promote W in the ROW? ( Assume that the advertising campaign makes foreigners demand more W relative to F at any relative price.) What would shift? What would happen to relative prices in the worl..
Employee posted unflattered comments : How would you react if you learned one of your employee posted unflattered comments about you as manager? would you reaction be anything different if the employee posted unflattered comments about you as a person?
Compute 95% confidence intervals for each odds ratio : Obtain model-averaged estimates of the odds ratios corresponding to the effect of each explanatory variable. Interpret these values.
Compare the tax incidence in the short run to the long run : Suppose the government institutes a tax on soft drinks. Assume that short-run and long-run demand curves are the same, while the long-run supply curve is more elastic than the short- run supply curve. Compare the tax incidence in the short run to the..
Probability of tripling her investment : An investor is considering two alternatives for which she has Rs. 1,00,000 to invest. The first is commercial property; the second is stocks. Analysis has revealed that the property alternative offers a 0.50 probability of tripling her investment ..
Under perfect competition firms take prices : Under perfect competition firms take prices as given. In that case, and under constant returns to scale, firms make 0 profits in equilibrium. Show that this is true for the Cobb Douglas production function, when firms rent capital from households at ..
Maintain the same systems and policies everywhere : Wal-Mart operated stores in both the US and Mexico. While Wal-Mart would like to maintain the same systems and policies everywhere they operate, culture creates some differences.
Increase in income on total health expenditures : If the price elasticity of demand is -0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculat..
Analyze what are the key points in the assigned readings : What are the key points in the assigned readings? Based upon your experience in education, how might you apply this content to a classroom and instruction?

Reviews

Write a Review

Business Management Questions & Answers

  Incident response planscenario fireto come out with a

incident response planscenario fireto come out with a incident response plan for a high-rise prominent hotel that

  Business practices in the future

What new technologies do you find most fascinating? How might they effect business practices in the future?

  Fred miracle cough syrup

Determine whether Fred's Miracle Cough Syrup is in compliance with government regulations involving public offerings by analyzing relevant laws and using the appropriate legal test and facts given.

  What are the three major marketing tasks facing service

As competition and costs increase, and as productivity and quality decrease, what are the three major marketing tasks facing service companies in contemporary times?

  How do you think the suppliers view the given sites

Ford and GM argue that these Internet sites should reduce cost because the negotiations are streamlined. How do you think the suppliers view these sites?

  Intertemporal budget constraint

A household has a two -period planning horizon where consumption in the two periods are bounded by the intertemporal budget constraint, c1 + c2 /(1 +r) = y1 + y2 /(1 +r)

  What is the probability of a wait

What is the probability that this person has to wait between 5 and 10 minutes for the next bus? What is the probability of a wait of at least 12 minutes? Determine the expected waiting time and variance of waiting times.

  Explore the current status of e-business

Identify and analyse the benefits of a business in becoming e-business. Explore the current status of e-business in the selected business sector.

  Form of business unit

The form of business unit that is owned by a single person and has got unlimited liabilities is called?

  Importance of leaders understanding reactions to change

Why is it important for a leader to understand their reaction to change and, what is a leader's role in influencing and coaching others through change?

  Do you think sentiment analysis is valuable

Please provide specific examples of times when you have engaged in sentiment analysis. Do you think sentiment analysis is valuable?

  Motivation and the operational effectiveness of vibe

What can Sam do to get Sarah and Julie motivated and engaged in the long term and how could job design and job enlargement be used to improve both staff motivation and the operational effectiveness of Vibe?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd