BUSI 620 help Making Decisions/uophelp.com BUSI 620 help Making Decisions/uophelp.com | Page 37
An investment opportunity will pay $10 with a 20% probability, $20
with a 40% probability,
$30 with a 30% probability, and $40 with a 10% probability. What is the
standard deviation
of the investment?
Question 6
The fully allocated cost of a product is $45. If the firm wants to use a
markup of 30%, then it
should charge a unit price of
Question 7
Investment A has an expected value of 5 and a standard deviation of 2.
Investment B has an
expected value of 10 and a standard deviation of 5. Using the coefficient
of variation
approach to comparing these two investments,
Question 8
Suppose that the firms in an oligopolistic market engage in a price war
and, as a result, all
firms earn lower profits. Game theory would describe this as
Question 9
Identify the Nash equilibrium in the following game.
Question 10