**Investment Decision-Making Exercise**A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 61% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $5,000,000 profit, a 29% chance of returning $2,000,000 profit, and a 56% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $4,000,000 profit, a 26% chance of no profit or loss, and a 59% chance of losing the million dollars.**Task:**Order the expected values from smallest to largest.**Options:**- first, second, third- second, first, third- second, third, first- first, third, second- third, first, second- third, second, first**Hint:**- [Hint](#)- [Video on Expected Value](#)**Submit Question***Note: Calculate the expected value for each investment using the formula: Expected Value (EV) = (Probability of Outcome 1 × Value of Outcome 1) + (Probability of Outcome 2 × Value of Outcome 2) + (Probability of Outcome 3 × Value of Outcome 3).*

Name: **Investment Decision-Making Exercise**A venture capitalist, willing
Uploaded: 2024-03-20T07:07:37.000Z
Channel: Bartleby
Description: **Investment Decision-Making Exercise**A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,

Givn that : A venture capital is willing to invest $1,000,000. The first investment. a software…

Math

Statistics

A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 61% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $5,000,000 profit, a 29% chance of returning $2,000,000 profit, and a 56% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $4,000,000 profit, a 26% of no profit or loss, and a 59% chance of losing the million dollars. Order the expected values from smallest to largest. first, second, third second, first, third second, third, first O first, third, second O third, first, second third, second, first

A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 6% chance of returning $11,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 61% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $5,000,000 profit, a 29% chance of returning $2,000,000 profit, and a 56% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $4,000,000 profit, a 26% of no profit or loss, and a 59% chance of losing the million dollars. Order the expected values from smallest to largest. first, second, third second, first, third second, third, first O first, third, second O third, first, second third, second, first

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

Analysts have determined that an upcoming business deal, which costs the company $40000 to initiate, has a 10% chance of generating $300000 of revenue, and a 60% chance of generating $80000 of revenue. Otherwise, the program will generate no revenue at all. On average, how much money will this type of business deal make or lose for the company?
A regional fast-food restaurant is considering an expansion program. The major factor influencing the success of such a program is the future level of interest rates. It is estimated that there is a 20% chance that interest rates will increase by 2 percentage points, a 50% chance that they will remain the same, and a 30% chance that they will decrease by 2 percentage points. The alternatives they are considering and possible payoffs are shown in the following table. Build 50 restaurants Build 25 restaurants Do nothing Rates up 2% - $220,000 -$125,000 - $60,000 Which alternative is best, based on expected value? O They should build 50 restaurants. O They should build 25 restaurants O They should do nothing. Rates unchanged Rates down 2% $55,000 $25,000 $0 $151,000 $83,000 $5,000
Please answer all three question.
Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city. Management at SAG is concerned about declining sales and profitability of the Cornwall store and believes that outlet has been a drag on profits in recent years. The most recent income statement for the Cornwall store follows. SWAIN ATHLETIC GEAR Cornwall Street Store Income Statement For the Year Ending February 28 Sales revenue $ 12,300,000 Costs Cost of goods sold $ 5,289,000 Advertising 1,421,000 Store administrative salaries 975,000 Sales commissions 1,056,000 Leases and utilities 2,100,000 Allocated corporate support 1,622,000 Total costs $ 12,463,000 Net loss before tax benefit $ (163,000) Tax benefit at 25% (40,750) Net loss $ (122,250) The CFO at SAG has asked for your advice on closing the Cornwall Street store. If the Cornwall Street store is…
Scenario. Much like the decision to start a business, the decision to attend college is fraught with risk; however, the risk of entering the job market with only a high school diploma is just as great. As the U.S. transformed from a manufacturing-based economy to an economy based on knowledge, high school graduates are often unable to obtain the number of high-paying jobs that were once available. College graduates earn more-some suggest as a much as 60% more over a lifetime than those without a college degree, and have a lower divorce rate, lower blood pressure and stress levels, and higher rates of job stability and satisfaction. However, a college education may not be the right choice for some. There may be a glut of college-educated workers in our workforce, and many careers, including those in cosmetology, do not require a college degree. The U.S. Department of Labor projects jobs for hairdressers, hairstylists, cosmetologists, and skin care specialists to grow 9-17% through the…
what's the answer?
You have $10,000 to invest, and three different funds from which to choose. The municipal bond fund has a 7% return, the local bank's CDs have an 8% return, and the high‐risk account has an expected (hoped‐for) 12% return. To minimize risk, you decide not to invest any more than $2,000 in the high‐risk account. For tax reasons, you need to invest at least three times as much in the municipal bonds as in the bank CDs. Assuming the year‐end yields are as expected, what are the optimal investment amounts? a. Choose the unknowns, i.e. variables. State what they are so you know exactly what you are looking for.b. Write your OPTIMIZATION EQUATION. c. Write the constraints as a system of inequalities, usually there are several.d. Graph the system and identify the feasibility region. e. Identify the corners of the feasibility region, which will be the ordered pairs that you test in your optimization equation.f. Calculate the value of the optimization equation using each of the ordered pairs…
While walking around you see a carnival game! The game has a 1% chance of you winning $150, a 3% chance of you winning $20, a 6% chance of you winning $6, and an 90% chance of you winning nothing. If the game costs $3 to play, how much should you expect to win (or lose) if you play this game once? For the same situation, how much should you expect to win (or lose) if you play the game 300 times?
First Securities, Inc., an investment firm, has $380,000 on account. The chief investment officer would like to reinvest the $380,000 in a portfolio that would maximize return on investment while at the same time maintaining a relatively conservative mix of stocks and bonds. The following table shows the investment opportunities and rates of return. Investment Opportunity Rate of Return Municipal Bonds (X1) 0.095 High Tech Stock (X2) 0.146 Blue Chip Stock (X3) 0.075 Federal Bonds (X4) 0.070 a) The Board of Directors has mandated that at least 60 percent of the investment consist of a combination of municipal and federal bonds, at least 25 percent Blue Chip Stock, no more than 30 percent High Tech and Blue Chip Stock, and no more than 15 percent High Tech Stock. Based on above problem, how many constraints are in this problem? A) 3 B) 4 C) 5 D) 2 b) Based on part a, which of the…
Duffin House, Higgins Press, and Sickle Publications all went public on the same day recently. John O’Hagan had the opportunity to participate in all three initial public offerings. He made a considerable profit when he sold all of the stock 2 days later on the open market. The following table shows the purchase price and percentage yield on the investment in each company: Purchase Price (per share) Yield (%) Duffin House (DHS) 8 20 Higgins Press (HPR) 10 15 Sickle Publications (SPUB) 15 15 He invested $20,000 in a total of 2,000 shares and made a $3,400 profit from the transactions.
A local softball league is raffling off $1000.00. You can buy one ticket for $4.00, three tickets for $10.00, five tickets for $16.00, or ten tickets for $30.00. Assume the league sells 500 tickets. Should you buy one, three, five, or ten tickets to maximize your expected winnings?
Investments: Financial Stocks At the end of September 2021, Toronto Dominion Bank (TD) stock cost $66 per share, was expected to yield 4% per year in dividends (calculated on the total value of TD stock you bought), and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $42 per share, was expected to yield 3.5% per year in dividends, and had a risk index of 2.0 per share.† You have up to $25,800 to invest in these stocks, and would like to earn at least $958 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio? Toronto Dominion Bank _____shares CNA Financial Corp. ___shares What is the minimum total risk index? (Round your answer to two decimal places.)