FREE Trial

What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with...

This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!

Question:

 

Transcribed Image Text:

What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85? Select one: O a. $325 O b. $5,500 O c. $2,750 O d. $1,175

Expert Answer:

Answer rating: 100% (QA)

Solution The co View the full answer


answer-question
Related Book For  answer-question
Basic Economics

Basic Economics

ISBN: 978-1111826642

16th edition

Authors: Frank V. Mastrianna

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Posted Date: January 12, 2021 09:36:36
See More Questions

Students also viewed these accounting questions

Q:
In reference to the production possibilities curve, how might a nation increase its total output if it is already fully employing its resources?
A:
A nation can still increase its tota......
Q:
In reference to the Chow business plan, present a Net Present Value Analysis for the expansion of the restaurant adjacent to its original location. You are to use capital budgeting concepts discussed...
A:
At Oak Spring University we provide corporate level professional Net Present Value NPV case study solution Thaifoon Restaurant case study is a Harvard Business School HBR case study written by Elizabe......
Q:
What are the circumstances under which a subsidiary could, and perhaps should, be excluded from consolidation?
A:
IAS 27 requires a parent to consolidate all subsidiaries foreign and domest......
Q:
A new out-of-state client, Robert Ball, has asked you to prepare a Form 709 for a large gift he made in 2013. When you request copies of any prior gift tax returns he may have filed, he responds,...
A:
Your Name Your Address City State ZIP Date Robert Ball 4560 Walton Lane Benton AR 72015 Subject Request for Prior Gift Tax Returns Form 709 Dear Rober......
Q:
Gruber Manufacturing has a beginning raw materials inventory of $12,000, ending raw materials inventory of $15,000, and raw materials purchases of $180,000. What is the cost of direct materials used?
A:
Raw materials inventory beginning 12......
Q:
Use Apples financial statements in Appendix A to answer the following. 1. What is the amount of Apples accounts receivable as of September 28, 2019? 2. Compute Apples accounts receivable turnover as...
A:
1 Apples accounts receivables are 22 926 million 2......
Q:
Suppose we use the FTCS scheme to solve the BlackScholes equation so that Show that the sufficient conditions for nonappearance of spurious oscillations in the numerical scheme are given by (Zvan,...
A:
Click to View...
Q:
The adjusted trial balance for Matusiak Company is given in E. Instructions Prepare the income and retained earnings statements for the year and the balance sheet at August31. Matusiak Company Trial...
A:
MATUSIAK COMPANY Income Statement For the Year Ended August 31 2014 Revenues Service revenue 35 200......
Q:
Jeremy is 15 years old. He emails your workplace to complain about access. He uses a wheelchair and there is no outside ramp access. He managed to get lifted into the store by his family, but when he...
A:
Subject Improved Accessibility Measures at Our Store Dear Jeremy I hope this message finds you well......
Q:
A corporation owns a chain of several hundred gasoline stations on the eastern seaboard. The marketing director wants to test a proposed marketing campaign by running ads on some local television...
A:
H o The population differences 0 H a The population differences Before After d Rank 10 50......
Q:
As an IT professional, you may find yourself anywhere from a customer's home, to a massive datacenter in a large company. Whether you're on your own throughout the day, or working with a team, the...
A:
In this scenario it s crucial to handle the situation professionally and effectively while addressing the customer s concerns and adhering to the comp......
Q:
What are isms? What do they share in common?
A:
isms are terms often used to denote specific belief systems ideologies or social political and philosophical movements characterized by a set of share......
Q:
According to progressives, what are the ways in which capitalists benefit from racist discrimination? How does this view differ from the conservative economics perspective?
A:
Progressives who often focus on issues of social justice and economic inequality argue that capitalist systems can perpetuate and benefit from racist discrimination in several ways Exploitation of Vul......
Q:
A 12 V DC power supply is connected to the primary coil of a transformer. The primary coil has 100 turns and the secondary coil has 200. What is the rms voltage across the secondary?
A:
The relationship between the primary voltage V......
Q:
Define and explain what is meant by stereotype, prejudice, and discrimination.
A:
Stereotype prejudice and discrimination are interconnected concepts related to how individuals perceive and treat others based on characteristics such......
Q:
Who benefits from racism and sexism?
A:
Racism and sexism are harmful and unjust systems that have negative consequences for individuals and......
Q:
Nevada has the fastest-growing population according to the U.S. Census Bureau. In 2004 the population of Nevada was 2.62 million and increasing at an annual rate of 3.5%. What is the expected...
A:
The detailed answer for the above question is provided below Nee......
Q:
1. True or False. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links. 2. Because 25 percent of the students in my morning statistics...
A:
1 False For small sample we already have small sample test and all sample......
Q:
How is it possible to raise the income level of all families and individuals in the economy without substantially changing the distribution of income?
A:
If the incomes of all families are raised by 10 percent for example t......
Q:
Why are revenue tariffs and protective tariffs considered incompatible?
A:
If a tariff is established for revenue purposes it must be high enough to bring in......
Q:
During an expansion and at a peak, what forces are building up that will eventually help bring about a contraction in the economy?
A:
Internal factors change in a way that leads to a contr......
Learning Sage 50 Accounting 2019 A Modular Approach 20th Edition - ISBN: 0176905928 - Free Book