Econ questions | Economics homework help

[ad_1]

Econ questions | Economics homework help

Answer the following 3 questions. (2 multiple choices and 1 essay question) For the multiple choice questions, you need to EXPLAIN YOUR ANSWER IN WORDS. For the essay question, no words limited , just fully answer it should be good, I need it in 10 hours.
1. Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probability of theft is 10%. Samantha lives in a lesser secure neighborhood where the probability of theft is 25%. Both Nadia and Samantha own cars worth $10,000, and are willing to pay $100 over expected loss for insurance. Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850. How much profit would it make?
 A. 1850 B. Zero-they would break even C. They would make a loss of $650 D. They would make a loss of $1100
2. Relative to a manager of a company owned store, a franchisee is more likely to 
A. Work very hard B. Not work as hard C. Work only evenings D. Work only night shifts
3. Suppose that, as an owner of a federally insured S&L in the 1980s, the price of real estate falls, and most of your loans go into default. In fact, so many loans go into default that the net worth of the S&L is negative ($5 million). Federal regulators haven’t realized this yet, but they will shortly. As a last-ditch attempt to save the bank, you attract $1 million in new deposits with very generous interest rates to depositors. You have two possible investments you can make with the $1 million. You can invest in the stock market, which will pay $4 million with probability 0.5 and $2 million with probability 0.5. Alternatively, you can invest in junk bonds, which pay off $10 million with probability 0.1 and $0.5 million with probability 0.9. 
(a) Which investment has the highest expected value to ordinary investor? 
(b) Which investment has the highest expected value to S&L owner? [Hint: Federal deposit insurance limits an S&L’s losses to zero.]

")96% of our customers have reported a 90% and above score. You might want to place an order with us."

Essay Writing Service
Affordable prices

You might be focused on looking for a cheap essay writing service instead of searching for the perfect combination of quality and affordable rates. You need to be aware that a cheap essay does not mean a good essay, as qualified authors estimate their knowledge realistically. At the same time, it is all about balance. We are proud to offer rates among the best on the market and believe every student must have access to effective writing assistance for a cost that he or she finds affordable.

Caring support 24/7

If you need a cheap paper writing service, note that we combine affordable rates with excellent customer support. Our experienced support managers professionally resolve issues that might appear during your collaboration with our service. Apply to them with questions about orders, rates, payments, and more. Contact our managers via our website or email.

Non-plagiarized papers

“Please, write my paper, making it 100% unique.” We understand how vital it is for students to be sure their paper is original and written from scratch. To us, the reputation of a reliable service that offers non-plagiarized texts is vital. We stop collaborating with authors who get caught in plagiarism to avoid confusion. Besides, our customers’ satisfaction rate says it all.

© 2022 Homeworkcrew.com provides writing and research services for limited use only. All the materials from our website should be used with proper references and in accordance with Terms & Conditions.