NEED A PERFECT PAPER? PLACE YOUR FIRST ORDER AND SAVE 15% USING COUPON:

homework help 4266

Suppose I offer you a choice among several investments. No matter which one you choose, you will invest the same amount of money, $200,000. Here are your investment choices and the expected results for the year. 

1 – Investment #1 will give you a guaranteed profit of $100,000 for the year. So you end the year with $300,000 (your $200,000 investment + the $100,000 profit).

2 – Investment #2 gives you a 50% chance to make a profit of $200,000 and a 50% chance of zero profit for the year. But you will not lose any money. So you have a 50% chance to end the year with $400,000 but a 50% chance you will end the year with the same $200,000 you started with.

3 – Investment #3 provides a 50% chance to make a $400,000 profit for the year and a 50% chance of losing $200,000 for the year. So at the end of the year, there is a 50% chance you will wind up with $600,000 (your $200,000 investment + $400,000 profit) but a 50% chance you will have nothing, having lost your $200,000 investment. 

Which investment would you choose? Why? What does your choice say about your risk tolerance? If you chose option 1 or 2, what amount could would it choose option 3, $800,000, a million?

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.

× How can I help you?