Wednesday, March 19, 2008

Rick and Uncertainty

I hope my money and banking students can answer the following:

T/F and explain.

If a payoff is uncertain (not merely risky), then you cannot calculate its expected value.
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1 comment:

  1. Anonymous3/21/2008 6:50 AM

    The statement is false. Of course you can calculate anything. Nothing in your statement demands accuracy.

    Aren't you glad I'm not one of your students?

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