Risky Undertaking ​ Suppose You Make a $2,000 Investment in a Risky

question 42

Essay

Risky Undertaking ​
Suppose you make a $2,000 investment in a risky undertaking.There is a 50% chance that the payoff from the investment will be $5,000,a 20% chance that you will just get your money back,and a 30% chance that you will receive nothing at all from your investment. ​ ​
-{Risky Undertaking Narrative} If you invest $6,000 in the risky undertaking instead of $2,000 and the possible payoffs triple accordingly,what are the expected value of the net profit from the $6,000 investment?

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Definitions:

Productivity

The efficiency of production of goods or services expressed by some measure, commonly the ratio of output to input.

Leadership Style

The characteristic approach to leading and influencing team members, shaped by behaviors, attitudes, and communication methods.

Contingent

Depending on something else that might or might not happen, often used to describe conditional situations or employment.

Contingency Approach

An approach to management that recognizes that there is no one best way to manage and that an appropriate management style depends on the demands of the situation.