Thpe your artwer- 2. Huili rumt her owm butiness. Historically, she knows that when she sends emails to customers that 40 percent of thote emalis are never opened, 40 percent are cotsind tut aith Low interaction and 20 perbent are opened and custoeners follow up on the links in the emails. Julia is able to link customer spending in the followits dres to data an atruli. She en the links. What is the empected value of an email? 20 24 36 40 3 beltw. Which candidate (the Victor lan or mid-century craltiman) has the higher espected rate of return? taiun 20cis on the flg probubility the cains 9 is on the fip. Tie Victorian home The Crattatust home They have the Lame expected rate of return purchining the Vitterian' Pick the closest integer But yourt need the precise answer in a couple questions expected utility vou are intereated in fral wealth states. ha 154 . 2n0 125 132 200 125 Widserien Eratismen 10 mints win 51210000 with certakity Aarney and Benjamitivute to take the come, Baxter wotes "no" Ali vete "rei" to take the cole Ni vete "yes' 10 take the cha Feir totatione ? Hif lave th the imyrance comparm| a.12 020 Q22 cos 10 Pontiti Their revevation price when their income is 350,000 is lower than if was when their income was 340000 Thele reservation price when ther income is 160.000 is higher thin it was when their income war 540.000 Their reservation price when their income is $80,000 is the same as it was when their incuese wax $40,000 31 the tatie at heth $40,000 and $00,000. True Fase The reservatan price would incteabe The reservation price would decoevie The vrimation price would remain the lame 123 pronit |Rourd to the heratest yerern] companles. Company A and Compamy B. One share of stock in either company costs $1, and the imvestor belleves that the stock wili rise in 52 if the cameary doe weil durire wold at whatever they are worth after it has been determined the company does well or poorly. Suppose the indlvidual only invests in Comparty II What is their eroected utioty? (Round to the nearest integer) Type your answer Suppose as indlividuat whith utility U (W) =W has inconse $35.000 and must imest $15.000 of that income in risky arsets. To simplily the probiem there aret only the compantes: Company A and Compary 8. One share of stock in elther compary costs 31 , and the investor believes that the stock will rise to 32 it the company doet weit isurind the next year. If the company does poorly, the stock is worth 50 . There is a 50 -50 chance of each stock doing well. When computing expected uti ty atsame the stoch have been What is their expected utility? Hint There are four states of the worid 1) Both companies do weil, 2) Both companies do poorly, 3) Adoes weil, B does not and a) B does well, A does not, Because delire well and pooriy are equally llkety, and since there are four possible outcomes, this implies the probsbility of each cutcome is 0.25. The expected wellity is 168 and this shows the value in diversifying your portfollo compared to investing in only one asset. The expected utilityis 185 and this shows the value in diversifying your portfolio compared to investing in only one asset. The expecied utility is 183 and this shows that diversifying your portfolio is not all it's cracked up to be. The expected usility is 162 and this shows that diversifying your portfolio is not all it's cracked up to be. Thpe your artwer- 2. Huili rumt her owm butiness. Historically, she knows that when she sends emails to customers that 40 percent of thote emalis are never opened, 40 percent are cotsind tut aith Low interaction and 20 perbent are opened and custoeners follow up on the links in the emails. Julia is able to link customer spending in the followits dres to data an atruli. She en the links. What is the empected value of an email? 20 24 36 40 3 beltw. Which candidate (the Victor lan or mid-century craltiman) has the higher espected rate of return? taiun 20cis on the flg probubility the cains 9 is on the fip. Tie Victorian home The Crattatust home They have the Lame expected rate of return purchining the Vitterian' Pick the closest integer But yourt need the precise answer in a couple questions expected utility vou are intereated in fral wealth states. ha 154 . 2n0 125 132 200 125 Widserien Eratismen 10 mints win 51210000 with certakity Aarney and Benjamitivute to take the come, Baxter wotes "no" Ali vete "rei" to take the cole Ni vete "yes' 10 take the cha Feir totatione ? Hif lave th the imyrance comparm| a.12 020 Q22 cos 10 Pontiti Their revevation price when their income is 350,000 is lower than if was when their income was 340000 Thele reservation price when ther income is 160.000 is higher thin it was when their income war 540.000 Their reservation price when their income is $80,000 is the same as it was when their incuese wax $40,000 31 the tatie at heth $40,000 and $00,000. True Fase The reservatan price would incteabe The reservation price would decoevie The vrimation price would remain the lame 123 pronit |Rourd to the heratest yerern] companles. Company A and Compamy B. One share of stock in either company costs $1, and the imvestor belleves that the stock wili rise in 52 if the cameary doe weil durire wold at whatever they are worth after it has been determined the company does well or poorly. Suppose the indlvidual only invests in Comparty II What is their eroected utioty? (Round to the nearest integer) Type your answer Suppose as indlividuat whith utility U (W) =W has inconse $35.000 and must imest $15.000 of that income in risky arsets. To simplily the probiem there aret only the compantes: Company A and Compary 8. One share of stock in elther compary costs 31 , and the investor believes that the stock will rise to 32 it the company doet weit isurind the next year. If the company does poorly, the stock is worth 50 . There is a 50 -50 chance of each stock doing well. When computing expected uti ty atsame the stoch have been What is their expected utility? Hint There are four states of the worid 1) Both companies do weil, 2) Both companies do poorly, 3) Adoes weil, B does not and a) B does well, A does not, Because delire well and pooriy are equally llkety, and since there are four possible outcomes, this implies the probsbility of each cutcome is 0.25. The expected wellity is 168 and this shows the value in diversifying your portfollo compared to investing in only one asset. The expected utilityis 185 and this shows the value in diversifying your portfolio compared to investing in only one asset. The expecied utility is 183 and this shows that diversifying your portfolio is not all it's cracked up to be. The expected usility is 162 and this shows that diversifying your portfolio is not all it's cracked up to be