Author Question: An investor has to choose between stocks A&B, each selling for 10 . Stock A, can either increase ... (Read 52 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
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
Answer to Question 1

a

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

For a complete list of videos, visit our video library