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Author Question: Michelle invested 50 in a project that has a 40 chance of being worth 80 and a 60 chance of being ... (Read 135 times)

faduma

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Michelle invested 50 in a project that has a 40 chance of being worth 80 and a 60 chance of being worth 20. One can conclude that Michelle is
 
  A) risk averse.
  B) risk neutral.
  C) risk loving.
  D) extremely wealthy.

Question 2

Without usury laws, banks will
 
  A) charge very high interest rates to all borrowers.
  B) charge higher interest rates to riskier borrowers than to safer borrowers.
  C) charge very low interest rates to all borrowers.
  D) face no demand for loans.


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at

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faduma

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Reply 2 on: Jul 1, 2018
Excellent


jomama

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Reply 3 on: Yesterday
Gracias!

 

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