You are a hotel manager considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the following table.  ProjectBoom (50%)Recession (50%)A$40-$20B-$10$30C$50-$50D$60$60If a manager adopted both project A and project B simultaneously, the expected value of this joint project would be:

Which of the following financial assets has both the highest risk and highest return for the period of 1926-2011?

A) small company stocks B) large company stocks C) corporate bonds D) Treasury bills

Which of the following is false about a liquidity trap situation: a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities. b. The Fed can lower both short term and long term interest rates by using quantitative easing. c. The Fed cannot easily reduce the fed funds interest rate

d. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates.