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Lynna [10]
3 years ago
12

Your business partner has proposed you to join him (her) in investing $100000 each in a new enterprise. assume that you have tha

t amount of money available. in case of success your return is $40000 but in case of failure you lose $20000. your analysis shows P40=0.3 of success and P-20=0.7 of failure.
would you invest?what is your investment risk preference and analysis?
Business
1 answer:
hjlf3 years ago
7 0

Answer:

I wouldn't invest.

Risk preference at least 50-50 chance of gain and loose

Explanation:

case of success the return i get is $40000

case of failure i lose $20000.

My analysis shows P40=0.3 of success

And P-20=0.7 of failure.

The probability of a loose is much bigger than the probability of a gain.

So I can't bear the loose of loosing 7 times if about 20000 and gaining 3 times of about 40000 it doesn't balance.

My loose accumulating to 140000

While my gain is 120000.

I can't invest

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bekas [8.4K]

Answer:

$3,860

Explanation:

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The cost price is $28 per tire

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<u />

<u>Value of stock at the end of Firm B:</u>

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8 0
2 years ago
In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan i
Hoochie [10]

Answer:

A. 3 business days

Explanation:

In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan is insured by the FHA or guaranteed by the VA, or when the loan will be sold to one of the federally related secondary mortgage market agencies, a good-faith estimate of the settlement costs must be provided by the lender within 3 business days.

5 0
3 years ago
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Today, the spot price of the EUR/USD exchange rate is $1.0796. The bid and ask quotes for the six-month EUR/USD forward contract
pantera1 [17]

Answer:

b. 13.63%

Explanation:

Multiple choice <em>"(a) 1.01% (b) 1.37% (c) 0.50% (d) -0.50%"</em>

<em />

Spot rate = future rate /(1 + interest rate differential)

1.0796 = (1.0796 + 0.007356)/(1 + interest rate differential)

1.0796 = 1.086956 / (1 + interest rate differential)

1.0796 * (1 + interest rate differential) = 1.086956

(1 + interest rate differential) = 1.086956/1.0796

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Interest rate differential = 1.006813634679511 - 1

Interest rate differential = 0.006813634679511

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So, the difference between interest rate of Europe and US is 13.63%.

6 0
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Wat theel is 2 puls 1 \
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Answer:

3

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Verbal/linguistic learners prefer learning activities that involve reading, writing, and speaking.
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