An investor considers investing $20,000 in the stock market. He believes that the probability is 0.20 that the economy will improve, 0.46 that it will stay the same, and 0.34 that it will deteriorate. Further, if the economy improves, he expects his investment to grow to $26,000, but it can also go down to $17,000 if the economy deteriorates. If the economy stays the same, his investment will stay at $20,000. What is the expected value of his investment?

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

Which feature is a characteristic of a corporation?

(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?