14. A businessman has Rs 10,00,000 available to invest. He can either put the money in the...
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14. A businessman has Rs 10,00,000 available to invest. He can either put the money in the bank at six per cent interest or he can start a new business venture. For the second act, he expects to make 12 per cent return on his investment if the business is a success, but if the business is a failure, he is expected to lose two per cent of his investment for the coming year. What probability must he assign to the occurrence of success ( of the business venture) to make the expected monetary return of the two possible acts equally attractive?
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