Estimated profit of typical start-up businesses, Macroeconomics

Assignment Help:

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.

 


Related Discussions:- Estimated profit of typical start-up businesses

Fdi inflows - an appraisal, FDI Inflows - An Appraisal: A comparison o...

FDI Inflows - An Appraisal: A comparison of the magnitude of FDI inflows received by India would appear too small, especially when compared to the inflows received by other co

How to calculate rate of interest, Assume a sudden collapse in the stock ex...

Assume a sudden collapse in the stock exchange of an economy is expected to reduce the future profitability of the firms of the economy. Construct loanable funds market in a c

Distinction between charasteristics of private and public, Use the distinct...

Use the distinction between the charasteristics of private and public goods to determine whether the following should be produced through the market system or provided by the gover

Employ the weights, Employ the weights given below and suppose that 2002 is...

Employ the weights given below and suppose that 2002 is the base year with a CPI equal to 100. Suppose also that since 2002 the price of food has increased by 10 percent; the price

Impact of transaction costs, Assess the impact of transaction costs as they...

Assess the impact of transaction costs as they apply to the Coase Theorem. Evaluate how government assignment of property rights impacts free market exchanges.

Strategic vs. tactical approaches, Consider Gold-Bernstein's Integration ro...

Consider Gold-Bernstein's Integration roadmap (p. 18).  Construct two business examples, one that clearly calls for a strategic integration effort and the other that call

Model Questions Required, 1) Assume that the production function for New Ze...

1) Assume that the production function for New Zealand is given by Y = AK0.57L0.43, where Y is real GDP (in 2000 constant dollars), K is real capital stock, L is labour. The parame

Show the ad curve over time, Q. Show the AD curve over time? With infla...

Q. Show the AD curve over time? With inflation, AD curve will no longer be stable over time. In its place, it will glide upwards or downwards at a rate determined by growth rat

Money illusion, A significant argument for the augmentation has to do with ...

A significant argument for the augmentation has to do with concept of money illusion. Money illusion means that you care about nominal rather than real amounts. Imagine that your s

Write Your Message!

Captcha
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