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Author Question: If interest rates are positive, which of the following has the highest current value (Read 15 times)

fbq8i

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Question 1

A person who strongly wishes to avoid risk would pick which of the following choices?


◦ a 50% chance of winning $750 or a 50% chance of winning $0.
◦ a 100% chance of getting $375
◦ a 50% chance of getting $750, 25% chance of getting $1,500 and a 25% chance of losing $1,500
◦ All of these are equal to a person who wishes to avoid risk

Question 2

If interest rates are positive, which of the following has the highest current value


◦ $350 a year from now.
◦ $350 now.
◦ $350 two years from now.
◦ All of these have the same current value.


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Marked as best answer by fbq8i on Apr 19, 2019

eliasc0401

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fbq8i

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Reply 2 on: Apr 19, 2019
Gracias!


nyrave

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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