Ask Question
10 July, 21:24

A local little league plans to invest $10,000 to host a tournament. they expect to sell $15,000 worth of tickets and concessions that weekend, but if it rains, they won't sell any tickets and will lose all of their money. the weather forecast for the weekend has a 20% chance of rain. a manager who is risk-neutral will

+5
Answers (1)
  1. 10 July, 21:52
    0
    A local little league plans to invest $10,000 to host a tournament. they expect to sell $15,000 worth of tickets and concessions that weekend, but if it rains, they won't sell any tickets and will lose all of their money. the weather forecast for the weekend has a 20% chance of rain. A manager who is risk-neutral will invest the money and hope for the best.

    A manage who is risk-neutral has no exact preference for risk. They are not risk seekers but aren't averse to the idea of taking a risk either. Because they are so indifferent to making a choice, they have riskier payoffs that could come with accepting the challenge.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A local little league plans to invest $10,000 to host a tournament. they expect to sell $15,000 worth of tickets and concessions that ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers