Question
Suppose X has income of Rs.500. He wants to maximise his
expected benefit Z1/2 where Z is his money earned. He has two options, 1. Do not invest 2. Investment full amount in company A with payoff of 1500 with 50% probability and Rs.0 with 50% probability. What is the maximum expected benefit out of the two options?Solution
Expected benefits = Z1/2 When he does not invest, EB= (500)1/2 = 22.36 When he does invest in A, EB = ½ (1500)1/2 + ½ (0)1/2 = ½ (38.73) = 19.36 So, Max EB = 22.36
According to IOM's World Migration Report 2026, India received over how much in remittances in 2024, retaining its position as the top recipient?
How many entities successfully completed the test phase of the fourth cohort of RBI's regulatory sandbox focused on 'Prevention and Mitigation of Financ...
Which state government launched the ‘Elvad Panchayat Abhiyan’ to promote surrender of Maoists?
On 12th December, 2022, Mirosław Hermaszewski died as a polished cosmonaut, he hails from the country?
The 39th Surajkund International Crafts Mela was held at which location?
Punjab National Bank has launched PNB Digital Gold Loan scheme. Which of the following statements is/are true with respect to this newly launched scheme...
What percentage of GST relief is provided to exporters on the goods they export?
Which four organizations will purchase green tugs (battery-electric powered) from Cochin Shipyard as part of the Green Tug Transition Programme (GTTP)?
______ has unveiled a new production line that would produce engines at its manufacturing facility in Hosur completely operated by women employees.
What is the issue price of Sovereign Gold Bonds 2023-24 (Series II) during the subscription period September 11-15, 2023?
