Question: Can anyone answer it correctly. Thanks for your help. Question-11 Assume that you have two investment alternatives: the first project produces $125 for sure, and

Can anyone answer it correctly. Thanks for your help. Question-11 Assume

Can anyone answer it correctly. Thanks for your help.

Question-11 Assume that you have two investment alternatives: the first project produces $125 for sure, and the second project produces $150 with probability 2/5. You can borrow $110 from your financial institution for one project (investment) if you show an asset as a collateral. Suppose that you maximize your expected profit, what would be the minimum level of collateral that make you select the safe project? (5 Points)

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