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2. You want to know how much your lottery ticket is worth. If it costs $1 and your probability of winning the $30 million dollar
2. You want to know how much your lottery ticket is worth. If it costs $1 and your probability of winning the $30 million dollar prize is 1 in 62,000,000, what is it worth? 3. The Boogie Board Inc firm has a beta of 2.3. If the Risk Free return is 3.5% and in general people earn 7% for putting their money into stocks, how much is the CAPM required rate of return for BBI? 4. If you knew the required rate for BBI was 17%, and with the same Beta (2.3) and risk for being in stocks of 7%, what would be the risk free rate in this scenario? 5. Krogers in Conway, Arkansas, wants you to make sure they don't run out of toilet paper over Toad Suck weekend in May. If the average number of packages you sell is 600 per week, with a variance of 5250 per week, how many should you make sure you order to be pretty certain that you won't run out
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