Author Question: Louey's Greasy Spoon restaurant charges 15 for each dinner entree and 5 for each dessert selection, ... (Read 92 times)

kshipps · **on:** Jul 1, 2018

Louey's Greasy Spoon restaurant charges 15 for each dinner entree and 5 for each dessert selection, and they offer a dinner special that provide an entree and dessert for 18.

If a diner at Louey's assigns zero value to dessert and 19 to an entree, what is their optimal decision? A) Buy the dinner special
B) Buy only the entree
C) Buy only the dessert selection
D) We do not have enough information to determine the optimal decision

Question 2

The slope of the budget line, faced by an investor deciding what percentage of her portfolio to place in a risky asset, increases when the

A) standard deviation of the portfolio gets smaller.
B) standard deviation of the risky asset gets larger.
C) rate of return on the risk-free asset gets larger.
D) rate of return on the risky asset gets larger.
E) rate of return on money gets larger.