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What is the EMV of this decision strategy (in miltion)? You have a ticket that will let you participate in a lottery that will pay
What is the EMV of this decision strategy (in miltion)? You have a ticket that will let you participate in a lottery that will pay off $30 with a 25% chance and nothing with a 75% chance. Your friend has a ticket to a different lottery with a 20% chance of paying $36 and an 80% chance of paying nothing. Your friend has offered to let you have his tickef plus a dollar if you give him your ticket. You are trying to answer the question: Should you agree to the trade and play to win $36, or should you keep your ticket and have a better chance of winning $30 ? What is your EMV if you trade the ticket? If you invest $9250 today in a busmess and your returns are 55965 at the end of each of the next two years, what is the NPV of this investment provided that the risk-free annual interest rate is 16% and
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