3.2 Formulas Flashcards

(4 cards)

1
Q

Expected value

A

(Probability × Payoff) + (Probability × Payoff)

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2
Q

Profit margin

A

Profit/ revenue x 100

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3
Q

Market capitalisation of a business

A

number of issues shared x current share price

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4
Q

Net gain

A

= expected value - initial cost of decision

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