tallulahandrews3897 tallulahandrews3897

07-06-2024
Business

Answered

Mitigating Risk

The NBA finals feature the Denver Nuggets and the Miami Heat. A manufacturer has two choices:
1. Produce shirts and souvenirs for Denver. This is worth $10,000 if Denver wins and $900 if Denver loses.
2. Produce shirts and souvenirs for Miami. This is worth $10,000 if Miami wins and $900 if Miami loses.
3. Produce shirts and souvenirs for UC Davis: This is worth $3600 regardless of the outcome of the NBA finals. Suppose that the probability that Denver wins is 60%.

Calculate expected value for each of the three options. What choice would a risk-neutral manufacturer make?

Answer :

Other Questions

In an office block of 960 employees, 640 drive to work. What fraction of employees drive to work.

¿Qué es el furano y el pirano?¿Cuál es la relación entre la maltosa y la celulosa?¿Por qué el disacárido maltosa es un azúcar reductor?¿Por qué la sacarosa es u

A mother tells her daughter that she doesn't want her to hang out with her friend anymore because she believes that she is a bad influence. What theory is she s

Two lines PQ and RS intersect each other at O. If POR: ROQ = 5:4,then POS is(a) 50°(b) 40°(c) 100°(d) 80°

6. The first asteroid to be discovered is Ceres. It is the largest and most massive asteroid in our solar system's asteroid belt, having an estimated mass of [t

Help me please and very fast

What can a borrower do to take control of their debt?A. The borrower can apply for more credit cards.B. The borrower can create a payment plan.C. The borrower c

¿Qué característica del dinero explica que la moneda tiene un valor numérico consistente, ya sea en forma de un dólar o como cien centavos?A. EstándarB. Almacén

Find the 3rd derivative of [tex]$f(x) = 4x^4 + 2x^3 - 6x + 1[tex]$[/tex] if [tex]$[/tex]y = 12$[/tex].

Consider the members of the interdisciplinary health care team who are responsible for care of a person dying in a long-term care facility. In the space below,