A contestant on a game show has a choice between taking $1,500 in cash or a prize hidden behind a curtain. The prize behind the curtain could be worth thousands of dollars or nothing. The expected value of the prize behind the curtain is $2,500. If the contestant is risk neutral, then the contestant will

What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005