Can you give a full and detailed explanation for this question? Thanks~ ...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Can you give a full and detailed explanation for this question? Thanks~
You have $100 now to invest. You consume all your investment proceeds after a year. There are only two possible outcomes with equal probability: (1) economy boom where retum on stock is 30% and return on bond is 2%; (2) recession where return on stock is -20% and return on bond is 2%. Your utility is U(x)=In(x). How much would you invest in stock? 49.7 B.68.7 C.70.5 OD.81.5
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.