A stock you bought two years a

Oct 15th, 2015
Anonymous
Category:
Engineering
Price: $10 USD

Question description

A stock you bought two years ago with high hopes is now selling for less than you paid, and things look grim for the company. Do you sell, or hold on and hope it will come back to the original price before you sell?A model economists use for such situations is a game no one wants to play: suppose you have a choice: lose $100, or take a 50-50 chance between losing nothing, and losing $300. Which do you choose? Find the expected value for each strategy over 10 trials

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