One year ago, you bought a share for $5.18. Unfortunately, the share did not pay you any dividends during that yea...

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One year ago, you bought a share for $5.18. Unfortunately, the share did not pay you any dividends during that year. The shar

You think that your chance of getting a well-paid job in an investment Bank is a percent. you get the job you will have a sta

business finance

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Answer 1

Answer #1

Return = (today's price - one year ago's price)/one year ago's price

= (10.16 - 5.18)/5.18

= 96.14%

Expected salary = probability of getting investment banking job * investment banking salary + probability of working on food outlet * food outlet salary

= .21 * 77000 + .79*40000

= 47,770

Correct answer is option a.

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Answer 2

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