subject
Business, 21.07.2020 17:01 chony83

Jack is a talented investor, but his earnings vary considerably from year to year. In the coming year he expects to earn $250,000 with good luck or $90,000 with 2 bad luck. Somewhat oddly, given his chosen profession, Jack is risk averse, so that his utility is equal to the square root of his income. The probability of Jack’s having good luck is 0.5. Required:
a. What is Jack's expected utility for the coming year?
b. What amount of certain income would yield the same level of utility for Jack as the expected utility in part (A)?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 16:40
Determining effects of stock splits oracle corp has had the following stock splits since its inception. effective date split amount october 12, 2000 2 for 1 january 18, 2000 2 for 1 february 26, 1999 3 for 2 august 15, 1997 3 for 2 april 16, 1996 3 for 2 february 22, 1995 3 for 2 november 8, 1993 2 for 1 june 16,1989 2 for 1 december 21, 1987 2 for 1 march 9, 1987 2 for 1 a. if the par value of oracle shares was originally $2, what would oracle corp. report as par value per share on its 2015 balance sheet? compute the revised par value after each stock split. round answers to three decimal places.
Answers: 1
question
Business, 22.06.2019 20:30
Discuss ways that oracle could provide client customers with the ability to form better relationships with customers.
Answers: 3
question
Business, 22.06.2019 20:40
Which one of the following statements is correct? process costing systems use periodic inventory systems. process costing systems assign costs to departments or processes for a time period. companies that produce many different products or services are more likely to use process costing systems. production is continuous when a job-order costing is used to ensure that adequate quantities are on hand.
Answers: 2
question
Business, 23.06.2019 04:40
Maria's family drove 140 mi to her grandparents' house and averaged 56 mi/h on the way thereon the return trip, they averaged 50 mi/hwhat was the total time maria's family spent driving to and from her grandparents' house? o2.5 ho 2.6 ho5.2 ho 53 hnext
Answers: 3
You know the right answer?
Jack is a talented investor, but his earnings vary considerably from year to year. In the coming yea...
Questions
question
Chemistry, 21.10.2020 16:01
Questions on the website: 13722362