Microeconomics

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A share of an oil company can be worth 10 with a probability of 0.50 and 20 with a probability of ... Started by jc611	1 Replies 32 Views	Jul 1, 2018 by medine
For a given expected value, the smaller the standard deviation of the expected value, the larger the ... Started by APUS57	1 Replies 78 Views	Jul 1, 2018 by jessofishing
Explain why the variance of an investment is a useful measure of the risk associated with it. ... Started by Bob-Dole	1 Replies 177 Views	Jul 1, 2018 by juliaf
If a person is entertained by gambling, then A) she is not risk averse. B) she does not ... Started by bobthebuilder	1 Replies 33 Views	Jul 1, 2018 by akpaschal
If a person is risk neutral, then she A) is indifferent about playing a fair game. B) will pay a ... Started by dollx	1 Replies 97 Views	Jul 1, 2018 by abctaiwan
Which of the following games involving the roll of a single die is a fair bet? A) Bet 1 and ... Started by tuffie	3 Replies 32 Views	Jul 1, 2018 by cuttiesgirl16
John's utility from an additional dollar increases more when he has 1,000 than when he has 10,000. ... Started by leilurhhh	1 Replies 78 Views	Jul 1, 2018 by reversalruiz
Bob invests 75 in an investment that has a 50 chance of being worth 100 and a 50 chance of being ... Started by vicotolentino	1 Replies 108 Views	Jul 1, 2018 by manuelcastillo
Bob invests 25 in an investment that has a 50 chance of being worth 100 and a 50 chance of being ... Started by mynx	1 Replies 126 Views	Jul 1, 2018 by swimkari
A rational person maximizes A) risk. B) return. C) expected utility. D) return ... Started by cherise1989	1 Replies 52 Views	Jul 1, 2018 by Perkypinki
A person that is risk averse A) exhibits decreasing marginal utility of wealth. B) exhibits ... Started by tiara099	1 Replies 42 Views	Jul 1, 2018 by emily12345
Jill's utility from an additional dollar increases more when she has 400 than when she has 200. From ... Started by B	1 Replies 14 Views	Jul 1, 2018 by parker125
If a person is risk averse, then she has negative marginal utility of wealth. Indicate whether ... Started by tichca	1 Replies 54 Views	Jul 1, 2018 by Sassygurl126
If a person willingly plays an unfair game that is not in his favor, he is risk loving. Indicate ... Started by Charlie	3 Replies 89 Views	Jul 1, 2018 by otokexnaru
Describe how the risk premium for a person with a convex utility function is determined. What ... Started by jessicacav	1 Replies 29 Views	Jul 1, 2018 by bpool94
Which of the following helps to reduce risk? A) Abstain from risk taking. B) Obtain more ... Started by rlane42	1 Replies 32 Views	Jul 1, 2018 by prumorgan
In terms of the stock market, systematic risk refers to the fact that A) some stocks have higher ... Started by fagboi	1 Replies 51 Views	Jul 1, 2018 by peter
If two events are perfectly positively correlated, then A) diversification is not necessary since ... Started by SO00	1 Replies 57 Views	Jul 1, 2018 by cpetit11
Many people do not fully insure against risk because A) they are risk averse. B) the insurance ... Started by beccaep	1 Replies 60 Views	Jul 1, 2018 by popopong
Which of the following losses to an individual would an insurance company NOT cover? A) The ... Started by geoffrey	1 Replies 34 Views	Jul 1, 2018 by gcook
A stock mutual fund is generally A) less risky than buying individual stocks. B) more risky than ... Started by cartlidgeashley	3 Replies 61 Views	Jul 1, 2018 by s.meritte
After Hurricane Katrina, there was considerable public outrage that many of the properties were not ... Started by B	1 Replies 32 Views	Jul 1, 2018 by CharlieArnold
If global warming began to cause random world-wide damage to crops, insurance companies A) would ... Started by mrsjacobs44	1 Replies 64 Views	Jul 1, 2018 by zoeyesther
Suppose a patent applicant approaches an insurance company and seeks to purchase an insurance policy ... Started by itsmyluck	1 Replies 47 Views	Jul 1, 2018 by lorealeza77
Suppose a senior college football player approaches an insurance company and seeks to purchase an ... Started by washai	1 Replies 40 Views	Jul 1, 2018 by Jadwiga9