Supone you want the lottery and had two options: (1) receiving 10.3 million or (2) taking a gamble in which, at the tip of a coin, you receive $1.8 million if a head comes up but receive tera tal comes What is the expected value of the gamble Enter your answer in millions. For example, an answer of $530,000 should be entered as 0.55. Round your answer to two decimal places million . Would you take the sure $0.9 million of the gamble? + If you then the sure $0.9 million would that indicate that you are a riskanter er risken? d. Suppose the payoff was actually 909 million that was the only choice. You now face the choice of investing it in U.S. Treasury bond that will return 98.00 at the end of a year or a common stock that has a 50-50 chance of being worthless of worth 12,250,000 at the end of the year 1. The expected profit on the bond investments 54,500. What is the expected dotat prot on the back on with out your answer completely form, 0.25 milon shell be entered as 250,000. Round your answer to two decimal places $ 2. The expected rate or ratum en the Tibernet Irvnatment 1 05w What we the expected rate of return on the stock investment Round your arwer to two decimal ples. 3. Would you invest in the band or stock? 4. Exactly how large would the expected profit for the expected at tum) have to be on the stock vester to make you invest in the stock given the 9.55 neturn on the body Round your wer to two decimal places. If next we can be obtained, enter 5. Mou might your declion befected the tranung one stock for 10 million, you could construct a porti cu 100 with 8,000 invested in macht achete stock has the same turn characteritiste one stock that I 50-50 chance of being worth or 2.100 stearend Investing in a portfolio of toch would definitely be a ton over song in the single stock II. Investing a poners would definitely be an avement over the angle stock II. The situation would be unchanged Would the correlation between reson these stocks matter? Suppose you won the lottery and had two options: (1) receiving 50.9 milion or (2) taking a gamble in which at the tip of coin, you receive $1.8 million if a head comes up but receive a tal comes up a. What is the expected value of the gamble7 Enter your answer in mins. For example, an answer of $350,000 should be entered as 0.55. Round your answer to two decimal places million b. Would you take the sure $0.9 million or the gamble? If you chose the sure $0.9 million, would that indicate that you are a risk verter or risk seeker? d. Suppose the payoff was actually $0.9 million that was the only choice. You now face the choice of Investing in a US Treasury bond that will return $985,500 * the end of a year of a common stock that has a 50-50 chance of being worthless or worth $2,250,000 at the end of the year. 1. The expected profit on the T-bond investment is $8.500. What is the expected dollat profit on the stock investment? Write out your swer completely. For example, 0.25 million be entered as 250,000. Round your answer to the decimal places 2. The expected rate of return on the T-bond investment is 9.5% What the expected rate of return on the investment Round your answer to two decimal places 3. Would you invest in the band or sto? 4. Exactly how large would the expected prek for the expected rate of return) have to be on the stock investment to make you invest in the wock, quen the return on the bond! Round your antiwer to two decimal places. If no exact answer can be obtained, enter 5. How might your decision be affected rather than buying one stock for you could control instiny of 100 stocks with 89,000 invested in each others stock has the same return characteristics as the one to this so chance of being worth zero of 22.00 Marino 1. testing in a portfolio of stocks would definitely be a deteneration over investing in the single stock II. Investing in a portfolio of stocks would definitely be an improvement over investing in the Night II. The station would be unchanged Would the correlation between return on the stocks matter Supone you want the lottery and had two options: (1) receiving 10.3 million or (2) taking a gamble in which, at the tip of a coin, you receive $1.8 million if a head comes up but receive tera tal comes What is the expected value of the gamble Enter your answer in millions. For example, an answer of $530,000 should be entered as 0.55. Round your answer to two decimal places million . Would you take the sure $0.9 million of the gamble? + If you then the sure $0.9 million would that indicate that you are a riskanter er risken? d. Suppose the payoff was actually 909 million that was the only choice. You now face the choice of investing it in U.S. Treasury bond that will return 98.00 at the end of a year or a common stock that has a 50-50 chance of being worthless of worth 12,250,000 at the end of the year 1. The expected profit on the bond investments 54,500. What is the expected dotat prot on the back on with out your answer completely form, 0.25 milon shell be entered as 250,000. Round your answer to two decimal places $ 2. The expected rate or ratum en the Tibernet Irvnatment 1 05w What we the expected rate of return on the stock investment Round your arwer to two decimal ples. 3. Would you invest in the band or stock? 4. Exactly how large would the expected profit for the expected at tum) have to be on the stock vester to make you invest in the stock given the 9.55 neturn on the body Round your wer to two decimal places. If next we can be obtained, enter 5. Mou might your declion befected the tranung one stock for 10 million, you could construct a porti cu 100 with 8,000 invested in macht achete stock has the same turn characteritiste one stock that I 50-50 chance of being worth or 2.100 stearend Investing in a portfolio of toch would definitely be a ton over song in the single stock II. Investing a poners would definitely be an avement over the angle stock II. The situation would be unchanged Would the correlation between reson these stocks matter? Suppose you won the lottery and had two options: (1) receiving 50.9 milion or (2) taking a gamble in which at the tip of coin, you receive $1.8 million if a head comes up but receive a tal comes up a. What is the expected value of the gamble7 Enter your answer in mins. For example, an answer of $350,000 should be entered as 0.55. Round your answer to two decimal places million b. Would you take the sure $0.9 million or the gamble? If you chose the sure $0.9 million, would that indicate that you are a risk verter or risk seeker? d. Suppose the payoff was actually $0.9 million that was the only choice. You now face the choice of Investing in a US Treasury bond that will return $985,500 * the end of a year of a common stock that has a 50-50 chance of being worthless or worth $2,250,000 at the end of the year. 1. The expected profit on the T-bond investment is $8.500. What is the expected dollat profit on the stock investment? Write out your swer completely. For example, 0.25 million be entered as 250,000. Round your answer to the decimal places 2. The expected rate of return on the T-bond investment is 9.5% What the expected rate of return on the investment Round your answer to two decimal places 3. Would you invest in the band or sto? 4. Exactly how large would the expected prek for the expected rate of return) have to be on the stock investment to make you invest in the wock, quen the return on the bond! Round your antiwer to two decimal places. If no exact answer can be obtained, enter 5. How might your decision be affected rather than buying one stock for you could control instiny of 100 stocks with 89,000 invested in each others stock has the same return characteristics as the one to this so chance of being worth zero of 22.00 Marino 1. testing in a portfolio of stocks would definitely be a deteneration over investing in the single stock II. Investing in a portfolio of stocks would definitely be an improvement over investing in the Night II. The station would be unchanged Would the correlation between return on the stocks matter