Question: please help me understand these question Let us suppose you can put your money into a savings account and earn $502 in two years. Alternatively,

please help me understand these question please help me understand these question Let us suppose you can put

Let us suppose you can put your money into a savings account and earn $502 in two years. Alternatively, you could put your money into a risky investment or into a more conservative investment. For the risky investment if the economy is good, will profit you $2000, but during a bad year, you would lose $500. For the conservative investment if the economy is good, will profit you $948, but if the economy is bad, you will lose $254. Conduct a sensitivity analysis between the savings account option and the risky investment for the probability p. At what value p would someone who is risk neutral be indifferent between the savings account and the risky investment. Note: if your answer is 91.2345%, enter in 0.9123 QUESTION 5 Ted Mosby just moved to New York City. He is deciding on whether to buy a subway pass on a monthly basis that allows him to take unlimited subway rides. Alternatively, he pay per ride, which is $5,58 per ride. He figures that the next month, if his usage happens to be high, it would be 85 subway rides, medium usage would be 49 rides, and low usage would be 38 rides. The probability of high usage is 30%, medium usage is 40%, and low usage is 30%. What would the cost of the unlimited subway rides pass have to be for Ted to be indifferent between the pay per ride and unlimited pass

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