Money-back guarantee the promoter of the fim venture offers, Ask an Expert

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(Money-back guarantee) The promoter of the fim venture offers a new investment designed to attract reluctant investors. One unit of this new investment has a payoff of three times the original investment if the venture is highly successful, and it refunds the original investment otherwise. Assuming that the other three investment alternatives described in example 11.6 are also available, what is the price of this money-back guaranteed investment?

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Financial Management, Finance

Category:- Financial Management
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