Payoff College Essays Samples For Students

Abstract

Decision-making under risk occurs when there is an uncertainty about the states of nature that can occur, but the probabilities of each of the states of nature occurring have already been determined. We can use these probabilities to determine additional strategies for decision-making. One such strategy is the Expected Monetary Value (EMV) approach for making an optimal decision. In the problem where the company had to decide on the right investment approach, the company had already done research to determine the various possible states of nature for each of the alternatives as well the probabilities of each of these ...

Abstract

Decision situations can be analyzed using different methods out which decision trees are useful to analyze complex situations. Frequently, decision situation is complicated because the payoffs are not only dependent on the initial decision but also dependent on the additional decisions are taken in the sequential step process. Decision trees can identify the best initial as well as the best subsequent actions. The decision criterion that a decision tree satisfies the Bayesian expected payoff criterion. The present case has multiple alternatives and multiple probabilities; decision tree is the best method for solving this. The resulting decision tree has three ...

Abstract

Decision-making can involve a single decision or multistage decisions. When the decision-maker has to make at least two decisions separated in time, such as a situation where a company must first decide if it makes sense to hire an expert to make an actual decision about an investment. As the decision-maker goes on making decisions, the uncertainty diminishes. The probabilities are determined in a reverse manner when compared to regular decision-tree used for decision-making. The resulting process is Baye’s rule or theorem. The company wants to find out if hiring an expert so that he or she can ...

Question 1

Suppose rock beats scissors in which case the points earned are two and not one, then we would expect a significant change to take place in the entire play. This would require that even for scissors and paper, the points be increased by an equal amount in order to ensure equilibrium in all cases. For the play to be interesting and highly appealing there should be fairness all round so that the winning parties usually get what the others would get if they were also to win. This makes the game more interesting and even reliable in making certain determinations, ...

Introduction

Human interactions can be just like games. Game theory is an approach that attempts to analyze situations the same way players in a game assess situations. We face many situations, yet we do not have rules on how to handle them. Hence we wonder, what players would do if they were faced with the same situation. In a game, players make quick and strategic decisions that will help their team win. We handle real life situations just like players. The decisions we make affects our outcomes. Since we come in contact with people, game theory establishes how we can strategize with ...

Similarly, the government should pay off students by funding their projects to help them get by through the school life. Most households or rather families cannot sustain their students at school with the high costs of maintenance as they lack the ability to finance their children or the ability to finance out-of- pocket costs of attending college. Therefore, much consideration has to be made where the sum of resources available or rather, savings, summer and part-time earnings, gifts and loans should be higher than the total out-of-pocket costs of attending college i.e. Tuition, travelling and all the other living ...

The rational theory of crime advances the argument that first and foremost, man is a rational being. Consequently in making a decision, he will reason out the options available to him, examine the end and the means to be used to attain that end. Additionally, he also weighs the costs and benefits of the act he is going to undertake. It is only after one is through with process that he can be said to have made a rational decision or choice. In the context of criminology, the theory puts forward the position that a criminal will carefully weigh all the factors surrounding a ...

Chapter four focuses on the victims’ nature and the soldier’s ability to kill. Soldiers can only kill when they have when there is sufficient pay off and relevance of the mission to kill. The author writes about the Shalit factors that determine a soldier’s ability to kill. They include the motive, means and opportunity. Soldiers determine the attractiveness of killing their target using three main factors. They include; payoff to kill, relevance of killing the victim and the relevance of the available strategies.
The strategy employed by the soldier should be one that guarantees less risk. The ...

Introduction to Convertible Bonds

Convertible bonds consist of the bonds that are easily converted into the stocks. These convertible bonds are issued by the company and like any other normal bonds it has maturity date and face value. The convertible bondholder has all the rights of converting the bond into the predetermined share numbers of the respective company in an identified period. The factors influencing the bondholder converting or not depend on the stock interest rates and prices.

Contract conditions and Payoffs

The convertible bonds market conditions are not standardized and hence making it differ depending on every contract case. The maturity date being one of the ...

Question 1

Beta is a measure of a project’s risk relative to the entire market . There are several factors that determine the value of beta of a project when it is calculated from domestic stock index against the world stock index. They include; financial leverage, operating leverage and the nature of the project .
Financial leverage is the amount of debt in a firm’s capital structure. Payment of interest on debt is a contractual obligation and is fixed. Fixed financing costs cause profits after tax of a project to vary with changes in sales and earnings before interest and tax. Financial leverage increases a project financial ...

The sixth chapter focuses on the killing behavior of soldiers in combat. The author writes that soldiers cannot become aggressive on their own. They must be influenced by their leaders and the surrounding conditions. There are manipulating variables that have to be regulated to ensure the soldiers’ ability to kill remains desirable. If not regulated, the soldiers could become rogue, or they may become too sympathetic to fight the enemy.
For soldiers to be ruthless on the battle front, they require authoritative leaders to give orders, demand respect and obedience. The soldier must also have a sense of belonging ...

Since millions of Americans don’t have jobs, if I were the president of the United States, I would apply various strategies to create employment opportunities. The best approaches would be increasing taxes on the wealthy, enhancing the payoff of university degrees, assisting small companies in securing foreign customers, creating a national jobs database and luring American companies to return their investments home.
First, I would raise taxes on the wealthy. The richest people have more money than they need. Ideally, they have a lot of money idling in their bank accounts. Even the investments of these wealthy citizens ...

Real Options are concerned with expanding, delaying or abandoning a project or a business decision. A real option value depends on the expected value of the future cash flows. Important elements in real option valuation are the discount rate and the expected cash flows for various scenarios. Decision trees help in deciding the payoff for the options for different scenarios and thus help in deciding whether to exercise the option or not and when to exercise it (Bowman, and Moskowitz, 2001).
Decision trees can be single staged or multiple staged. The value of the options to be determined dictates ...

Credit cards, Debit Cards and Credit score

Credit Cards
Credit cards (usually plastic) assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered. These are used to make payment in retail shops or stores present online. Credit cards are usually issued by banks or other entities approved by government. VISA and MasterCard are two prominent examples of bank-issued general purpose credit cards. On the other hand, many nonbank companies can also issue credit cards such as Discover, American Express, and Diners Club. Credit cards have many advantages ...

International Finance Management

Reference list .
Introduction
Increasing participation in international trade exposes companies to the exchange rate risk. That owes to the possible loss of value in the amounts that are to be received for exports or the increase in the amount that has to e paid for imports. In that respect, companies need to apply strategies to manage the risk through various available techniques. In that view, this report presents a demonstration of those techniques’ application with reference to a company involved in payments and receipts of foreign currency. The report presents an analysis of the forward, swap arrangements and futures ...

Translation risk arises due to variance in exchange rate used in expressing the portfolio components in the books of multinational firms. The higher the portfolio components in the books of the company, the higher the translation risk. Bearing in mind, this kind of risk, several ways have been suggested, and most of them adopted to cushion the multinational against this type of risk. This article will briefly discuss the available ways of cushioning a company against this risk.
This type of risks is mostly felt by companies that operated cross border businesses and particularly where a single currency is accepted ...

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The movie, ' The Princess Bride' is a fanatical fairy tale based on the novel by William Goldman. The book as by name is a romantic narrative, yet other elements of the tale enhance the reader's interest in the reading. This includes the fancy, fighting and decisive points, such the point when the outlaw Vizzini is offered two goblets of wine and must determine which one holds the poison. Herein, the writers utilizes the game theory to add in the interest of reader with logic and script. Likewise, in the referred movie a scene called battle of wits ...

Abstract

Ethics is one of the most important aspects in accounting yet most often it is misunderstood and misinterpreted in different organizations in an effort to suite their disclosure grounds. Many researchers have blamed various aspects to this trend. For example, some researchers have turned to the learning institutions as a blame for producing half-baked students who fail to meet fundamental entry to the employment industry. For this reason, the employers are forced to enroll these candidates into other classes in an effort to equip them for the workplace environment. However, since the organizations do not have all the time to ...

Discounted-Cash-Flow Analysis

Question 1
True, False, or Uncertain. Other things being equal, an increase in the volatility of the underlying asset will increase the value of the call option on that asset. Explain.
It is true that when other things are held constant, an increase in the volatility of the underlying asset will result in an increase the value of the call option on the asset. . The price of a call option depends on the volatility of the underlying asset. Volatility of price refers to the tendency of the underlying asset price to fluctuate over time. There is a direct relationship ...