« previous next »

Author Question: An investor has to choose between stocks A&B, each selling for 10 . Stock A, can either increase ... (Read 66 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?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Gossip and ridicule increase the status insecurity of this time of life. Gossip and ridicule increase the status insecurity of this time of life.
A high-performance aftermarket air filter often can increase airflow into the engine for more ... A high-performance aftermarket air filter often can increase airflow into the engine for more ...
How to choose the right payment plan with changing conditions (Question 4) How to choose the right payment plan with changing conditions (Question 4)
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Lipid catabolism ( ketogenesis and oxidation of glycerol) and Lipid anabolism (lipogenesis)

For a complete list of videos, visit our video library