Venture that has the following risk-return profile

Assignment Help Financial Management

Reference no: EM13928866

Suppose you are very favourably considering a venture that has the following risk-return profile. Probability Return 1/3 -10 1/3 0 1/3 +13 since the expected return = 1.0, you give it a thumbs up. But the venture capitalist who will fund the venture requires that he receive 25% of any positive profit. How would that change your verdict?

Reference no: EM13928866

Questions Cloud

Information about the quality of the product : Software testing is an investigation conducted to provide stakeholders with information about the quality of the product or service under test.[1] Software testing can also provide an objective, independent view of the software to allow the busine..

How could you infer what type of volcano erupted : How could you infer what type of volcano erupted in a given area based on the type of debris found

What are three benefits of universal standards : What is e-commerce? How does it differ from e-business? Where does it intersect with e-business? What are the eight key components of an effective business model?

Under the ifrs revaluation model : Under the IFRS revaluation model, what amount would be reported on the company's 2013 and 2014 balance sheets for the land and for the building? Show any necessary computations.

Venture that has the following risk-return profile : Suppose you are very favourably considering a venture that has the following risk-return profile. Probability Return 1/3 -10 1/3 0 1/3 +13 since the expected return = 1.0, you give it a thumbs up. But the venture capitalist who will fund the venture ..

The focus of atmospheric pollution on climate : With much of the focus of atmospheric pollution on climate-changing gases such as carbon dioxide (CO2), there can be a tendency to downplay the risk posed by other pollutants. One such pollutant is sulfur dioxide, the chemical involved in acid rain

Propose a new system for riordan : Propose a new system for Riordan to use to improve its business (this is a 'made up' business that can be anything. Develop a Microsoft® PowerPoint® slide presentation of the project, due in Week 9. The presentation must include the following:

All sales were on credit selected balance sheet amounts : Selected yearend financial statements of Cabot Corporation follow, all sales were on credit selected balance sheet amounts at December 31, 2012 were inventory; $52,900; total assets; 229,00; common stock 105,000 and retains earning 52, 548.

What are the major limitations on the growth of e-commerce : What are the major limitations on the growth of e-commerce? Which is potentially the toughest to overcome? Her, the student Carla's response or answer (post) to that question is below.

User Account

All Pages