Business, 03.12.2021 20:30, zibnmustafah
Morris is considering investing $10,000 in a sunglass company or a rain poncho company. If it is a rainy year and he invests only in the sunglass company, he will lose $5,000. However, if it is a rainy year and he invests only in the rain poncho company, he will earn $10,000. If it is a sunny year and he invests only in the sunglass company, he will earn $10,000; if he invests only in the rain poncho company, he will lose $5,000 in a sunny year. There is a 50% chance of a sunny year and a 50% chance of a rainy year.
Select one:
a. to break even
b. a loss of $2,500
c. a gain of $2,500
d. a gain of $10,000
Answers: 2
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Morris is considering investing $10,000 in a sunglass company or a rain poncho company. If it is a r...
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