Suppose Nara could invest her $1000 in a savings account or she could invest in the stock market
After one year, the savings account has a guaranteed 5 percent interest rate and the stock market has a 10 percent chance of tripling her money, and 90 percent chance of losing it all. What is the difference in Nara's expected wealth between these two options? A) $1050
B) $300
C) $750
D) $50
C
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Choose which statement is most correct
A) Real GDP can never exceed potential GDP. B) Real GDP must always equal potential GDP. C) At times, real GDP can exceed potential GDP. D) Nominal GDP can never exceed potential GDP. E) Nominal GDP must always equal potential GDP.
The circular flow model is an abstract representation of the interaction between households and firms through the institutions of
a. government and financing outlets b. church and state c. property and law d. resource and product markets e. trade and conflict