SOLUTION: Suppose you take the sure $0.5, You can invest it in either a U.S Treasury Bond that will return $537,500 at the end of a year or a common stock that has a 50/50 chance of being ei

Algebra.Com
Question 1161292: Suppose you take the sure $0.5, You can invest it in either a U.S Treasury Bond that will return $537,500 at the end of a year or a common stock that has a 50/50 chance of being either worthless or worth $1,150,000 at the end of the year.
What is the expected dollar profit on the stock investment?

Answer by greenestamps(13203)   (Show Source): You can put this solution on YOUR website!


????!!

$0.5 returning $537,500 at the end of a year?

Please tell me how I can get in on that....


RELATED QUESTIONS

Hello, I am having trouble with the following question: Suppose you have $1,000 to... (answered by josmiceli)
suppose you buy a 5 year treasury bond face value 2,000 for a purchase of 1800. Assuming... (answered by jorel1380)
You recently graduated and your job search brought you to Blues Airline. Since you felt... (answered by ikleyn)
Solve Problems Using Linear Systems 8. Hakim invested $15 000. He put part of it in a... (answered by Earlsdon)
You have $10,000 which you will invest for the next four years. You are considering the... (answered by cp24)
treasury bill is a short term investment product backed by the Bank of Ghana on behalf of (answered by CPhill)
The U.S. Treasury offers to sell you a bond for $613.81 no payments will be made until... (answered by Theo)
3. Pharmos Incorporated is a Pharmaceutical Company which is considering investing in a... (answered by ikleyn)
You received a year-end bonus of $17000 and invested it at 6.5%. How much additional... (answered by 24HoursTutor.com)