5. Find the expected value assuming the risk factor is 30% and the interest rate is 15%, if you will receive $20,000 one year from today. 6. Find the expected value assuming the risk factor is 30% and the interest rate is 15%, if you will receive $20,000 two years from today.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.5P
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Please both questions 

5. Find the expected value assuming the risk
factor is 30% and the interest rate is
15%, if you will receive $20,000 one year
from today.
6. Find the expected value assuming the risk
factor is 30% and the interest rate is
15%, if you will receive $20,000 two years
from today.
Transcribed Image Text:5. Find the expected value assuming the risk factor is 30% and the interest rate is 15%, if you will receive $20,000 one year from today. 6. Find the expected value assuming the risk factor is 30% and the interest rate is 15%, if you will receive $20,000 two years from today.
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