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NeuroJuice NeuroJuice
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A year ago
An early-stage venture capital (VC) firm invests 100M dollars equally across 5 different new start-ups. Each of the start-ups has an equal and independent probability of succeeding or failing. If any single start up succeeds, the VC firm will get 100x their initial investment (i.e., for every $1 they have invested, they get $100). If a start-up fails, the VC loses all the money it has invested. The VC has a goal of at least quadrupling their overall investment portfolio by next year. What is the minimum probability of success that each start-up needs to have for this to happen?

▸ 10%

▸ 4%

▸ 50%

▸ 40%
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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clubber25clubber25
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A year ago
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NeuroJuice Author
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A year ago
Just got PERFECT on my quiz
joyceess
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Yesterday
Smart ... Thanks!
novae
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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