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Hi, hoping that someone can help me figure out if these examples are risk averse, seeking, neutral, or not enough info. Thanks! C. The risk
Hi, hoping that someone can help me figure out if these examples are risk averse, seeking, neutral, or not enough info. Thanks!
C. The risk free rate is 4%. I'm willing to pay up to $170 for a box that will pay $100 next period with probability 20%, and $200 next period with probability 80% d. I'm willing to pay up to $180 for the box from part e. The price today of a zero-coupon, $1000 FV, 5 year treasury is 814.0694. I'm willing to pay up to $146.5325 for a box that will pay $100 in 5 years with probability 20%, and $200 in 5 years with probability 80%Step by Step Solution
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