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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Given $100,000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills based on the following table?
|
Action |
Probability |
Expected Return |
|
Invest in |
.6 |
$50,000 |
|
Equities |
.4 |
$30,000 |
|
Invest in risk-free T-bills |
1.0 |
$ 5,000 |
a. $13,000
b. $15,000
c. $18,000
d. $20,000
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