Discuss the salvage value of bankrupt hedge funds

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Question: An article in BusinessWeek discusses the salvage value of bankrupt hedge funds compared with the salvage value of bankrupt consumer lenders. Suppose the following data are the value a shareholder can salvage, in cents per invested dollar, for random samples of the two kinds of institutions.

Hedge funds:               10, 15, 10, 17, 10, 11, 9, 9, 12

Consumer lenders:        25, 15, 15, 28, 33, 10, 29, 25, 18

Which kind of institution, if either, falls harder and leaves its unfortunate investors in more trouble?

Reference no: EM131709986

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