« previous next »

Author Question: An investor has to choose between stocks A&B, each selling for 10 . Stock A, can either increase ... (Read 68 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
on: Jul 1, 2018
An investor has to choose between stocks A&B, each selling for 10 . Stock A, can either increase in price to 12, with a 50 probability or stay at 10 with a 50 probability. Stock B can either increase in price to 15 with a 50 probability or go down to 7 with a 50 probability. Which of the stocks would the investor choose
 a. Stock A
 b. Stock B
 c. None of the stocks
 d. The investor would exit the market

Question 2

If the bidders at a first-price auction have true values of 8, 7, 6, and 5, the item will sell for
 a. 8
 b. 7
 c. just over 8
 d. just under 7


mohan

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Many diesel fuel additives increase the cetane rating which results in improved fuel economy. Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
Nonlinear increase in saturation vapor pressure with increase in temperature. Nonlinear increase in saturation vapor pressure with increase in temperature.
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
Selling Today: Partnering to Create Value (Manning/Ahearne/Reece) Selling Today: Partnering to Create Value (Manning/Ahearne/Reece)
Chiropractor (stock image) Chiropractor (stock image)
For each substrate below, choose which reaction type is favored. Place the letter of the ... For each substrate below, choose which reaction type is favored. Place the letter of the ...
Video: Skin Cancer

For a complete list of videos, visit our video library