What is the expected dollar return on the gamble

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Reference no: EM13724170

Suppose that a person won the Florida lottery and was offered a choice of two prizes: (1) $500,000 or (2) a coin-toss gamble in which he or she would get $1 million if a head were flipped and zero if a tail.

a. What is the expected dollar return on the gamble?

b. Would the person choose the sure $500,000 or the gamble?

c. If he or she chooses the sure $500,000, is the person a risk averter or a risk seeker?

Construct an equal Construct an equal-weighted (50/50) portfolio of investments B and D. What is the expected rate of return and standard deviation of the portfolio? Explain your results

10.3 construct an equal weighted (50/50) portfolio of investments b and c. what is the expected rate of return and standard deviation of the portfolio? Explain the results.

Construct an equal weighted 50/50 portfolio of investment B and D. What is the expected rate of return and standard deviation of the portfolio? Explain the result.

Reference no: EM13724170

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