Returns on a certain business venture, to the nearest $1,000, are known to follow the probability...

  

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Returns on a certain business venture, to the nearest $1,000, are known to follow the probability distribution PX) |-2,000 0.1 |-1,000 0.1 0.2 1,000 0.2 2,000 0.3 3,000 0.1 a. What is the most likely monetary outcome of the business venture? b. Is the venture likely to be successful? Explain. c. What is the long-term average earning of business ventures of this kind? Explain. d. What is a good measure of the risk involved in a venture of this kind? Why? Compute this measure. Returns on a certain business venture, to the nearest $1,000, are known to follow the probability distribution PX) |-2,000 0.1 |-1,000 0.1 0.2 1,000 0.2 2,000 0.3 3,000 0.1 a. What is the most likely monetary outcome of the business venture? b. Is the venture likely to be successful? Explain. c. What is the long-term average earning of business ventures of this kind? Explain. d. What is a good measure of the risk involved in a venture of this kind? Why? Compute this measure.

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The given table x Px 2000 01 1000 01 0 02 1000 02 2000 03 3000 01 A Fro... View the full answer