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A new country club is being built in eastern Limestone County. Jeremy believes that if he purchases a membership while the club is under construction,
A new country club is being built in eastern Limestone County. Jeremy believes that if he purchases a membership while the club is under construction, he will be able to sell it for $15,000 one year after the club begins operation. However, he judges there is a 0.5 probability that financing will fall through and the club will never open. He is willing to invest no more than $5000 in a membership today. Jeremy's risk tolerance is ________. Ignore time value of money, interest, cashflow discounting and such considerations.
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