The work has not been graded but I like the output that was submitted to me. Is it possible for the same prof to do the next assignment I will be submitting? If possible, I will greatly appreciate it.
Imagine you have $24,000 and you are willing to invest. You have two choices:
a) A safe investment that promises to pay 5% profit after 1 year.
b) A risky investment that has a 25% chance you might loose half of your money.
1) How much do you expect to get paid for a year in the second investment to be indifferent between two investment choices? (the two investments have the same Expected Profit)
2)What is the Risk Premium in the second choices?
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