Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Answer:
Convertible bonds
Explanation:
One advantege of convertible bonds for the issuer is that bondholders are willing to accept a loxer interest rate because they have an option of converting their bonds to common stock.
If a company wants to issue bonds at an interest rate that is lower than the current market interest rate, they should offer convertible bonds.
Answer:
As you are working on a Google Search Ad that's not performing as expected and you specifically want more users to click on the ad. To improve the click-through rate on your ad, you have to enhance and improve the text of your ad, you can do it by selecting and using more better, effective, rich, competitive and most searched keywords. Moreover, you can take help from higher converting advertisement copy as well. Adding the links of your ad to other social media and blog pages can also be very helpful. Furthermore, you should stop the ads which are not performing well. All of these things can improve the click-through rate on your ad.
Answer:
The cross price elasticity of demand measure how sensitive is the demand of the product X is due to the change in the price of the product Y.
The formula is stated as: Percentage change in the quantity demanded of product X / Percentage change in the price of product Y.
Further, cross price elasticity can be divided into Positive, negative and zero.
Hope this clears things up.
Good Luck.
