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

TAXATION, What is Inherent Limitation?

What is Inherent Limitation?

Two banks for financing, You decide to buy a home for $1,000,000. You appro...

You decide to buy a home for $1,000,000. You approach two banks for financing. The first requires a 10% down payment and requires monthly payments on a 20 year mortgage sufficient

Which of the following statements is correct, Which of the following statem...

Which of the following statements is true? a. economic profit equals accounting profit minus implicit costs b. the short run is any period of time in which there is at least

Price to the government of buying unsold units firms, Consider a market whe...

Consider a market where supply and demand are given by QXS = -12 + PX and QXd = 78 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase any and all un

What is social cost benefit analysis, It refers to the study of feasibility...

It refers to the study of feasibility of a project in terms of its total economic cost and total economic advantages. It means to compare total cost with total advantage if we

What is the value of the swap in terms of both bonds and fra, Suppose that ...

Suppose that the yield curve is flat at 5% per annum with continuous compounding. A swap with a notional principal of $100 million in which 6% is received and six-month LIBOR is pa

Explain about household savings, Q. Explain about Household savings? Re...

Q. Explain about Household savings? Remember that consumption may refer to observed consumption as well as to demand for consumption. The same is true for 'household savings',

Damaging to the economy, Why do financial crises occur and why are they so ...

Why do financial crises occur and why are they so damaging to the economy?

What is collateral management, Collateral Management is a function to handl...

Collateral Management is a function to handle collateral effectively. It gives interface to enter collateral data, and it has a master data of collateral descriptions and types. It

Best estimate of real gdp, Consumption = $3 trillion, Investment spending =...

Consumption = $3 trillion, Investment spending =$2 trillion, Government purchases = $2 trillion, net exports via the ROW is $0 trillion. 1. What is the best estimate of real GDP

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