What is my expected benefit?, Microeconomics

I am risk averse, and trying to maximize my expected value of c0, 5, where c is my fortune.
I have 50.000 in cash, and also art with a value of 200.000 which I keep in my
basement. I live in an area that may experience basement flooded during heavy
rains. If my basement is flooded, my art only 40.000 worth.
The probability of a flooded basement is 1 per cent.
Posted Date: 10/22/2012 8:55:22 AM | Location : United States







Related Discussions:- What is my expected benefit?, Assignment Help, Ask Question on What is my expected benefit?, Get Answer, Expert's Help, What is my expected benefit? Discussions

Write discussion on What is my expected benefit?
Your posts are moderated
Related Questions
Using the key distinguishing features of any market structure describe the market structure for the South African mobile telecommunications industry

merits and demerits of international trade

Hi, Can you help with writing ten pages, each page deferent topics about Karl Marx economic views. It will be in english as a second language. Nothing fancy. Just simple straight

Player 2   C B A 1,2 3,2 B 2,3 a, b         Player 1

What is the difference between 'scarcity' and 'shortage'?  'Scarcity' and 'shortage' have dissimilar definitions. In reality, when most of the goods and resources are scarce go

Capital make large scale production and greater degree of specialization possible. Thus with capital accumulation the advantages of large scale production and specializations are o

I need help on MCQs on international trade and imperfect competetion

a consumer consumes only two goods x and y is in eqillibrium price of x falls explain the reaction of consumer through utility analysis

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

The State of Confidence in Conventional Judgements : While individuals fall back on conventions to guide their behaviour in the face of uncertainty, they are also aware that th