Business, 05.05.2020 08:54 williamsvilletiles

You are playing a fair gamble with your initial wealth $1,000,000. The expected return of each play of the gamble is 0% since it is a fair gamble. If you try to play this fair gamble 100,000 times, the probability that your wealth after the gambles is higher than your initial wealth is 50% since it is a fair gamble. Assume you bet the same fixed amount at each play and you are not allowed to borrow money.

A. True
B. False

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:00

Ok, so, theoretical question: if i bought the mona lisa legally, would anyone be able to stop me from eating it? why or why not?

Answers: 1

Answer

Business, 22.06.2019 08:00

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

Answers: 1

Answer

Business, 22.06.2019 09:40

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

Answers: 1

Answer

Business, 22.06.2019 21:00

Noah met an old friend at a coffee shop. he jotted down the friend's new phone number, but later that afternoon he could not find it or remember what he had done with it. a couple of days later, noah went back to the coffee shop, and while waiting in line, he suddenly remembered where he had put the phone number. this is an example of:

Answers: 1

Answer

You know the right answer?

You are playing a fair gamble with your initial wealth $1,000,000. The expected return of each play...

Questions