« previous next »

Author Question: An investor has to choose between stocks A&B, each selling for 10 . Stock A, can either increase ... (Read 63 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?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Despite the traditional focus on males, females actively choose mates and are the driving force in t Despite the traditional focus on males, females actively choose mates and are the driving force in t
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Choose the telephone unit that offers the features needed in your office. Choose the telephone unit that offers the features needed in your office.
Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ... Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ...
Nonlinear increase in saturation vapor pressure with increase in temperature. Nonlinear increase in saturation vapor pressure with increase in temperature.
How to choose the right payment plan with changing conditions (Question 5) How to choose the right payment plan with changing conditions (Question 5)
Video: Five phases of cardiac cycle & Atrial contraction

For a complete list of videos, visit our video library