Statistic Forum

Suppose that the percentage annual return you obtain whenyou invest a dollar in gold or the stock market is dependent on the generalstate of the national economy as indicated below. For example, the probabilitythat the economy will be in "boom" state is 0.15. In this case, ifyou invest in the stock market your return is assumed to be 25%; on the otherhand if you invest in gold when the economy is in a "boom" state yourreturn will be minus 30%. Likewise for the other possible states of theeconomy. Note that the sum of the probabilities has to be 1–and is.

State of economy

Probability

Market Return

Gold Return

Boom

0.15

25%

(-30%)

Moderate Growth

0.35

20%

(-9%)

Week Growth

0.25

5%

35%

No Growth

0.25

(-14%)

50%

Based on the expected return, would you rather invest yourmoney in the stock market or in gold? Why?

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Instructions:

To make a post to this week's Discussion Forum, click on theDecision Alternatives link, then click Start a New Conversation.In the title block of the dialog box thatappears insert your first and last name; compose your post in the messagebox–do not make your post in an attachment; and then click Post Message.

BUSINESS Forum

During our continued review of business plans, pleaseconsider the value of a business plan as a resource for sustained companyoperations. Watch the video and answer the questions below.

Video:

Learning Objectives:

To examine and review various types of business plans.

To create a potential business plan that could be used for anew start-up business that could be used in securing financial assistance fromexternal sources.

Prompt:

How can a business plan assist with keeping a company on asuccessful path for continued growth?

When might an entrepreneur, business leader, or managerreference a business plan?

Conduct a little research on business plans, discuss thedesign and key components that should be included within a business plan.

Instructions:

Your response must be in your own words.Your initial post should be 275 words minimumthat reflects research and not opinion.Provide citations for the source of your learning.