1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vitek1552 [10]
2 years ago
12

I am a rational and risk-averse person, and I have an option of making the following bet: I receive $500 cash, after which I rol

l a normal 6-sided die. Whatever I roll, I must pay $200 times the value of the roll of the die (so if make the bet and roll a ‘2’, I get $500, then have to pay out $400, thus I win $100 in total). 10. If my goal is to maximize my personal utility, should I accept this bet, and does my exact level risk aversion affect whether or not I should accept the bet? I should accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does matter There is not enough information to determine whether I should accept the bet or not; the precise level of my risk aversion does matter
Business
1 answer:
Tamiku [17]2 years ago
4 0

Answer:

I should not accept the bet; the precise level of risk aversion does matter.

Explanation:

Risk averse person is the one who is not willing to take the risk even if he is given high returns. Risk averse person will always avoid the risks. In the given scenario the person is risk averse. If he rolls out the dice he has to pay $200 times the dice number which means he just have two chance (dice rolls 1 or dice rolls 2) for getting return otherwise he will loose the bet and he will have to pay money from the pocket.

You might be interested in
If a cash basis business owner pays 18 months of rent expense in advance during the last month of the tax year, how is this trea
borishaifa [10]

Answer:

Check the following consideration

Explanation:

Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.

7 0
2 years ago
St. Jude Medical makes cardiovascular medical devices, including the world's most widely used mechanical heart valve. Its produc
11111nata11111 [884]

Answer:TRUE

Explanation: Competitive advantage is a term used in business or economics to refer to Opportunity gained by a business organization over others either through REDUCED PRICE,BETTER QUALITY OF PRODUCT OR SERVICE,THROUGH ECONOMIES OF SCALE, THROUGH INNOVATION etc an organization with a good Competitive advantage will generate more Revenue compared to others. Competitive advantage helps to make an organization better than others.

7 0
2 years ago
Big John’s manufacturing currently produces its lead product on a machine that has a variable cost of 0.32 per unit and a fixed
Greeley [361]

Answer:

The indifference point is 1,875,000 units.

Because the current machine has lower fixed costs, it has a lower cost from 0 units to 1,874,999. From 1,875,001 the new machine is more convenient,

Explanation:

Giving the following information:

Current machine:

Total cost= 75,000 + 0.32x

New machine:

Total cost= 150,000 + 0.28x

<u>To find the indifference point, we need to equal the cost functions and isolate x (number of units)</u>

75,000 + 0.32x = 150,000 + 0.28x

0.04x= 75,000

x= 1,875,000

The indifference point is 1,875,000 units.

Because the current machine has lower fixed costs, it has a lower cost from 0 units to 1,874,999. From 1,875,001 the new machine is more convenient.

6 0
3 years ago
1 of 5) What does it mean to "Diversify" your portfolio?
eduard

Answer:

D. A and B

Explanation:

5 0
3 years ago
The $1,000 par value bonds of uptown tours have a coupon rate of 6.5 and a current price quote of 101.23. what is the current yi
Paul [167]

Hello, to get the current yield of the bond, determine first the<span> annual interest payment which is calculated as stated interest rate times the face value of the bond. In this question, the bond’s value is $1,000 and the stated interest rate is 6.5 percent, therefore, the annual interest payment is 65. Finally, the annual interest payment of 65 is divided by the current market price quote of 101.23 to get the current yield of 64.21%. Hope this helps.</span>

4 0
3 years ago
Other questions:
  • Which economic system emphasizes the private ownership of most factors of production
    8·1 answer
  • You want to purchase a new car in 88 years and expect the car to cost ​$58 comma 00058,000. Your bank offers a plan with a guara
    6·2 answers
  • A marketing manager wants to build a strong relationship with the customers and to customize messages without high costs. He und
    7·1 answer
  • An advantage of the Free Alongside Ship Incoterms Rules is the thorough documentation of the receipt of goods at a port hold are
    13·1 answer
  • A basic idea underlying __________________ is that a manager should be held responsible only for those items that the manager ca
    10·1 answer
  • the part of a business plan that includes an organization chart, job descriptions of listed positions, and detailed resumes of t
    10·1 answer
  • Philosophers of ethics often contend that the argument that codes should provide action recipes for all situations neglects the
    8·1 answer
  • Tidy Limited purchased a new van on January 1, 2018. The van cost $36,000. It has an estimated life of six years and the estimat
    7·1 answer
  • Which of the following statements about economic policy are FALSE?
    13·1 answer
  • In the united states, loans from ________ are far ________ important for corporate finance than are securities markets.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!