1. Explain which attitude towards risk is assumed under the expected monetary value approach? Which attitudes towards risk are not considered under the expected monetary value approach? Explain answer
2. Bekah purchases a stock for $95 per share. At the end of the first year, the stock is worth $190, representing a 100% return. At the end of the second year, the stock has declined to $100, representing a 47.4% loss. Calculate the geometric return of this stock.