Equilibrium price because that's where they are at the same point meaning everything is equal.
<span> reasons people don’t manage their money well for the future is that most of the peoples income is less than their expenditurs.an other reason is that some people have no idea about money management</span>
Answer: See explanation
Explanation:
a. What is the expected value of his investment?
Based on the information given, this will be:
= (0.29 x $26000) + (0.35 x $20000) + (0.36 x $14000)
= $7540 + $7000 + $5040
= $19580
b. What should the investor do if he is risk neutral?
If the investor is risk neutral, then he should invest $20000.
c. Is the decision clear-cut if he is risk averse?
If the investor is risk averse, then it should be noted that he should not invest $20000 since the expected value of the investment will be lesser than its investment. In this case, the decision isn't clear cut if he's risk averse.
Answer:
See explanation Section
Explanation:
See the following images to get the proper explanations and step-by-step answer.
