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 price will be cut in half, but otherwise it will remain $100. 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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Q: risk of loss: lose 10 with probability 0.4 and lose 5 with probability 0.6. They are considering…

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Q: What is the expected value of this gambling game?

A:

Q: Your utility function is given by M1/2. You have $100 and are planning to invest in a venture where…

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Q: (a) Will this individual participate in the lottery? (b) Calculate this individual's certainty…

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Q: Find the Pratt - Arrow risk - aversion function for a utility function U(W) = log(0.5-W + 500),…

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