Author Question: Utility theory is the study of the __________________ or relative desirability of a particular ... (Read 115 times)

cabate

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Utility theory is the study of the __________________ or relative desirability of a particular outcome that reflects the decision maker's attitude toward a collection of factors, such as profit, loss, and risk.
 a. total worth
 
  b. total cost
 
  c. feasibility
 
  d. financial wellness

Question 2

Optimization models can be used to
 a. assess the risk of investment portfolios.
  b. forecast future financial performance.
  c. successfully manage commercial real estate risk.
  d. decide on how to invest cash received from insurance policies.



Dinolord

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Answer to Question 1

a
RATIONALE: Utility theory is the study of the total worth or relative desirability of a particular outcome that reflects the decision maker's attitude toward a collection of factors, such as profit, loss, and risk.

Answer to Question 2

d
RATIONALE: GE Asset Management uses optimization models to decide how to invest its own cash received from insurance policies and other financial products.



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