Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

An entrepreneur has a project that requires a $10,000 initial investment. The project is risky and will produce revenue of $16,000 with probability 0.75 and revenue of $12,000 with probability 0.25. If the entrepreneur invests, then what is her expected revenue, minus the initial investment?

A. $5,000

B. $4,500

C. $8,000

D. $1,350

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M945000

Have any Question? 


Related Questions in Basic Finance

Explain what we mean when we say that the binomial model is

Explain what we mean when we say that the binomial model is a discrete time model and the Black-Scholes-Merton model is a continuous time model? Explain the difference between a normal and a lognormal distribution as it ...

Discussion lets discuss the following based on the assigned

Discussion: Let's discuss the following (based on the assigned and recommneded reading): 1. Is Paying a Premium for Certain Securities Worth the Price? Are portfolio managers willing to pay a premium for securities that ...

1 why is specialization so critical to distribution

1. Why is specialization so critical to distribution efficiency? 2. Describe how the process of assortment overcomes the problems created by specialization. 3. Given the principle of minimum transactions, explain why it ...

Aol is considering two proposals to overhaul its network

AOL is considering two proposals to overhaul its network infrastructure.  They have received two bids.  The first bid from Huawei will require a $18 million upfront investment and will generate $20 million in savings for ...

In a 1-page word document consider the following activities

In a 1-page Word document, consider the following activities and their durations. The original project schedule, using early activity starts, is shown below. Activity Task Predecessors Duration Activity Cost A Sign Contr ...

1 why do researchers use inferential statistics2

1. Why do researchers use inferential statistics? 2. Distinguish between the null hypothesis and the experimental hypothesis. 3. When analyzing data, why do researchers test the null hypothesis rather than the experiment ...

Explain why end users who conduct their risk management

Explain why end users, who conduct their risk management operations in the treasury department, should not require the treasury department to be a profit center ? Distinguish the typical objectives of a dealer engaging i ...

Jullian was curious if regular excise really helps weight

Jullian was curious if regular excise really helps weight loss,she decided to perform a hypothesis test. A random sample of 5 Kansas State students was chosen. The students took a 30-minute exercise every day for 6 month ...

1 what has happened to the average cash dividend payout

1. What has happened to the average cash dividend payout ratio of U.S. corporations over time? What explains this trend? How would your answer change if share repurchases were included in calculating U.S. dividend payout ...

1 what are the five groups that must be fully engaged in

1. What are the five groups that must be fully engaged in the nation's war on terrorism? 2. What is the goal of emergency management in regards to the terrorism threat? 3. How much money did the federal government spend ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen