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$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