Tuesday, February 26, 2019

Case study on “If two heads are better than one, are four even better”

If 2 heads are better than one, are four even so better Maggie Becker, 24, is a marketing manager for Kavu, a small chemical chain of coffee shops in eastern Ohio. Recently,Maggies wealthy uncle passed a port and unexpended to Maggie, his only niece, $100000. Maggie consider her current salary to be adequate to see her current living expenses, so shed like to invest the currency so that when she buys a house shellhave a nice nest bullock block on which to draw. One of Maggies neighbours, Brian, is a financial advisor. Brian told Maggie there was a or so endless array of investment option. She asked him to present her with two of the better(p) options, and this is what he came up with1. A very low risk interchangeable fund. With this option, based on the information Brian provided, Maggie estimates that after 5 years she stands virtually zero chance of losing money, with an expected gain of approximately $7000.2. A moderate-risk mutual fund. Based on the information Brian p rovided her, Maggie estimates that with this option she stands a 50 portion chance of making a $40000 gain but also a 50 percent chance of losing $20000.Maggie prides herself on being rational and aim in her thinking. However, shes unsure of what to do in this case. Brian refuses to help her, sex act her that shes already limited herself by asking for only two options. While driving to her parents house for the weekend, Maggie finds herself vacillating between the two options. Her onetime(a) brother is also visiting the folks this weekend, so Maggie decides to gather her family almost the table after dinner, lay out the two options, and go with their purpose You know the old saying-two heads are better than one, she says to herself, so four heads should be even better.Questions1.Has Maggige made a good decision about the way she is going to make the decision?2.Which investment would you choose, why?3.Which investment do you think most people would choose?4.Based on what you ha ve learn about groupshipt, which investment do you think Maggies family choose?

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