Estimated profit of typical start-up businesses, Macroeconomics

Typical start-up businesses' estimated profit are forecasted as following:

State

Bad

Good

Probability

81%

21%

Profit

-3.5M

16M

A. Quantitatively prove that even with obvious likelihood of failure, a person could rationally justify chasing such a risky entrepreneurial proposition.

B. Consider the case of two economies-one with two start-ups and another with four start-ups whose fortunes are completely separate of each other.  Quantitatively prove that the distribution of the wealth for the economy becomes much more normally distributed than each start-up's especially as the number of start-ups rises.

C. Argue factually what the results imply for the macro policy towards angel/venture capital investing.

 

Posted Date: 3/21/2013 2:13:25 AM | Location : United States







Related Discussions:- Estimated profit of typical start-up businesses, Assignment Help, Ask Question on Estimated profit of typical start-up businesses, Get Answer, Expert's Help, Estimated profit of typical start-up businesses Discussions

Write discussion on Estimated profit of typical start-up businesses
Your posts are moderated
Related Questions
At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would b

Construct loanable funds market in the context of an open economy assuming that the home country is a small open economy. Discuss the effect of an enhance in the govt. expendi


When the reserve requirement changes, which of the following will change in the total banking system?  (Answer change or No Change) Transaction Deposits Total Reserves Req

Limitations of the theory of rational expectations: Critics of this theory note that if policy makers have more information about the economy or their own actions than d

A passive deficit is the portion of the deficit that exists when: A. inflation is not fully anticipated. B. inflation is fully anticipated. C. the economy is at potential income. D

Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead time o

1. # of sellers, # of buyers 2. entry and exit conditions 3. product characteristics 4. short run P&Q determinations and the resulting 3 possibilities for excess profit (graphs ar

how to solve problem of scarcity and choice

Discuss how income flows in governed economy, frugal economy, spend their economy.