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

Capital Account: The capital account deals with long and short-term capital movement.These capital movements are referred to as autonomous because they take place for business o

What are the problems of interest for several reasons in cost minimization? Cost Minimization: A significant implication of the firm choosing a profit-maximizing producti

what are the advantages of monopsony?

Allocative Efficiency The production of products and services such that stages of production are closely tied to levels of customer demand.


What is the difference between 'Capital' and 'Capital value'?   "The total amount of money or other resources owned or used to obtain future income or benefits." On the other h

why is the point outside the production possibility curve(PPC)called unttianable


What are the three major types of unemployment?   a) Frictional b) Structural and c) Cyclical unemployment. Cyclical unemployment is broadly spread by an economy durin