Answer:
108,280.22
Explanation:
Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable
U(x) = x^1/4
U^-1(x) = x^4
U^-1(x) === x^4
CE(x) = x^4
Salary Bonus Total income U(x)= x^(1/4) P(x) U(x)*P(x)
80000 0 80000 16.82 1/7 2.4
80000 10000 90000 17.32 1/7 2.47
80000 20000 100000 17.78 1/7 2.54
80000 30000 110000 18.21 1/7 2.6
80000 40000 120000 18.61 1/7 2.66
80000 50000 130000 18.99 1/7 2.71
80000 60000 140000 19.34 1/7 <u>2.76</u>
Sum <u>18.14</u>
CE(x) = 18.14^4
CE(x) = 108280.22
So therefore, the certainty equivalent of this job offer is 108,280.22
In a split offering, we see that a) shares are issued from the corporation and sold by existing shareholders.
<h3>What is a split offering?</h3>
A split offering is a type of stock issuance that involves the issuing of new stock and existing stock that it is in the market already. This is why it is called a split offering - one side of the offering comes from the corporation, and the other comes from the existing shareholders.
With a split offering, the seller will be existing shareholders and not the company. This means that the corporation that issues the shares, will then cooperate with existing shareholders who will then be the ones to sell the shares.
Find out more on stock offerings at brainly.com/question/13049425.
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A would be your best answer. Hope I helped!
Answer:
The containment doctrine.
Explanation:
American government's fear of Soviet expansion (communism) triggered the entrance of the US into the cold war. During the 1940s the US developed an strategy of nuclear deterrence since it lacked sufficient amount of troops to confront the Soviet army in eastern Europe. The Truman Doctrine helped to expand the cold war to the whole world.
