Question
You bet $100 because you think Tampa Bay will win the Superbowl. This bet is risky because your outcomes are $0 if they lose and
You bet $100 because you think Tampa Bay will win the Superbowl. This bet is risky because your outcomes are $0 if they lose and $200 if they win. What is the beta of this Superbowl bet?
You are the CEO of Microsoft. Your biggest shareholder, Bill Gates, tells you that he plans to build one million water wells in Africa next year. Do you need to change Microsoft's investment plans because this new information?
You are considering investing in a new business. Today you must invest $500. The project payouts are 100, 200, 250, and 500 over the next 4 years. What is the payout period for this investment?
Nike is considering launching a new line of sneakers. This sneaker will cost $9 million to develop and produce. They expect to make $90 million in income over 10 years from selling this sneaker. What is the AAR of this investment?
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