This topic contains a solution. Click here to go to the answer

Author Question: What are the different categories of risk preferences? Explain. What will be an ideal ... (Read 80 times)

rachel9

  • Sr. Member
  • ****
  • Posts: 495
What are the different categories of risk preferences? Explain.
 
  What will be an ideal response?

Question 2

If Ed Sike (who you met in Chapter 8 ) lowers ticket prices to a point where the number of tickets demanded is greater than the number of seats available,
 
  A) Ed will be in a good position to grant favors to his friends.
  B) net revenue will be negative.
  C) net revenue will be positive but not necessarily at the maximum level.
  D) resources will not be allocated efficiently.
  E) total revenue will be maximized.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katieost

  • Sr. Member
  • ****
  • Posts: 358
Answer to Question 1

The three categories of risk preferences are:
a) Risk-averse: Risk-averse people prefer to invest in options that have less risk.
b) Risk-neutral: Risk-neutral people do not care about the level of risk involved in investment options.
c) Risk-loving: Risk-loving people prefer to invest in options that have high risk.

Answer to Question 2

A





 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

For a complete list of videos, visit our video library