Given a 25% chance of a 600,000 bushel yield and a 75% chance of a 500,000 bushel yield, what quantity should the farmer hedge in order to protect against an uncertain harvest? Assume the farmer is willing to take reasonable risk
A) 0
B) 500,000
C) 525,000
D) 600,000
C
Business
You might also like to view...
What is a major challenge that marketers face when entering social networks?
A) Advertising rates are highly negotiable. Marketers can easily spend too much. B) Marketers have to blend in. Just showing up in a social network is suspect. C) Marketers cannot tell who is a connector and who is an audience member. D) People on social networks tend to be greedy. They want free products from marketers. E) Marketers are used to using traditional media. They do not know how to navigate social sites.
Business
Using a cliché becomes a tempting alternative to _____________________
a. a shorter phrase b. revising a sentence c. not finishing the writing d. serious thought
Business