ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Leo owns one share of Anteras, a semiconductor chip company which may have to recall millions of chips. The stock currently trades at $100/share. Leo believes the probability that they have to recall the chips is 50%. If the chips have to be recalled, the stock
The expected value of Leo's share is ______
Assume Leo has the utility function, U(X)=√X. The minimum price Leo would accept to sell his share is _______
Leo's risk premium is ________
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