Developing new treatment for an incurable disease

Assignment Help Business Economics
Reference no: EM131163281

Suppose you are considering investing in a pharmaceutical company that is developing a new treatment for an incurable disease. If it is successful, the company’s stock price will increase from $30/share to $40/share. If the new treatment fails, the stock price will remain at $30/share. The probability of success is .10; the probability of failure is .90. A __________________ person would buy the stock at $30 per share.

a. risk neutral

b. risk inclined

c. risk averse

d. risk loving

Reference no: EM131163281

Questions Cloud

What is the money multiplier and lending capacity : How large is the money supply? How much excess reserves are there? What is the money multiplier? What is the available lending capacity?
Find the deflection and slope at point a of beam : Find the deflection and slope at point a of the simply-supported beam shown in Fig. 4.39 using the second Castigliano theorem. Assume linear elastic behavior.
Write proposal for an ict strategic planning process for uem : Write a proposal for an ICT strategic planning process for UEM. The diagram(s) should be included where possible to explicitly show the IT strategic planning process that could enhance the use of information systems and improve the learning proces..
Assignment-dropbox assignment : In this assignment, you need to complete a team assignment, with a group of four to five people of your choice. The purpose of your team assignment is to experience working in a group and to apply very specific concepts you are learning about lead..
Developing new treatment for an incurable disease : Suppose you are considering investing in a pharmaceutical company that is developing a new treatment for an incurable disease. If it is successful, the company’s stock price will increase from $30/share to $40/share. If the new treatment fails, the s..
How small must the load p be so as not to violate constraint : It is desired to limit the centerline deflection of the spandrel beam (Fig. 4.41) to (1/288)L, where L is the length. Expressed in terms of the usual beam parameters (E,I,L,P), how small must the load P be so as not to violate the constraint? .
Marginal cost curve above the average variable cost curve : A firm’s marginal cost curve above the average variable cost curve is equal to the firm’s individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price eq..
Description of the product and the advertising campaign : A brief (1-2 pages) description of the product and the advertising campaign under analysis, including the types of mass media used and Media effects research and sociopsychological theories that are applicable to the campaign
How the proposed whsms meets legislative requirements : Establish and maintain WHS management systems - demonstrate the skills and knowledge required to establish and maintain a WHS management system.

Reviews

Write a Review

Business Economics Questions & Answers

  Contrast the characteristics of economic growth

The very recent past in Latin America suggested at least the possibility of a swing back toward populism. Research this question and decide whether current populism in Latin America is similar to past populist movements, especially by comparing econo..

  What price of computers the two countries might trade

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.

  Illustrate what are short-run and long-run effects output

illustrate what are short-run and long-run effects on aggregate price level and aggregate output. There is an increase in taxes on households. There is an increase in quantity of money. There is an increase in government purchases.

  Question 1nbspa firm that emerges as the only seller in an

question 1nbspa firm that emerges as the only seller in an industry with economies of scale is

  Give the null and the alternative hypotheses

A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size bat..

  How many speedometers must the company sell to break even

The Automotive Supply Company has a small plant that produces speedometers exclusively. Its annual fixed costs are $30,000, and its variable costs are $10/unit. It can sell a speedometer for $25. How many speedometers must the company sell to break e..

  Pre-sign all the closing documents per the current terms

You have entered into a contract to purchase new house, and the closing is scheduled for next week. It's typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. pre-sign all the closing do..

  Why there is no pure strategy nash equilibrium in game

Consider the horizontal quality model on the unit interval from 0 to 1. There are Nconsumers located uniformly along the interval. There are two firms, with zero marginal costs, initially located at 0 to 1. Consumers will buy one unit of the good fro..

  About the fiscal policy

The last recession ended in the middle of 2009. Since the end of the recession, has fiscal policy been a success? Why or why not?

  How can you justify existence of government-granted monopoly

How can you justify existence of government-granted monopolies for such public utilities as local telephone service, natural gas.

  What is the purpose of the feds structure

When banks borrow directly from the Fed, the interest rate on those loans is the. An increase in money growth will cause inflation to increase in. What is the purpose of the Fed's structure?

  What are the prices each store will charge for hamburgers

Assume a linear town with 100 potential costumers that are uniformly distributed on a unit mile.  What are the prices each store will charge for hamburgers? What would their profits be? (b) Intuitively, would both stores be happy with their price and..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd