This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is true of risk aversion? A) Greater risk aversion results in lower ... (Read 41 times)

geoffrey

  • Hero Member
  • *****
  • Posts: 880
on: Jul 10, 2018
Which of the following is true of risk aversion?
 
  A) Greater risk aversion results in lower required returns for each level of risk.
  B) A reduction in risk aversion causes the required return for each level of risk to increase.
  C) In general, widely shared expectations of hard times ahead tend to cause investors to become less risk averse.
  D) Changes in risk aversion, and therefore shifts in the SML, result from changing preferences of investors.

Question 2

Xiao Xin is planning to accumulate 40,000 by the end of 5 years by making 5 equal annual deposits.
 
  If she plans to make her first deposit today and can earn an annual compound rate of 9 percent on her investment, how much must each deposit be in order to accumulate the 40,000?
  A)  6,132
  B)  6,684
  C) 23,844
  D)  9,434


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carissamariew

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

B


geoffrey

  • Member
  • Posts: 880
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

tranoy

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

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?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Risk for injury Risk for injury
Lower extremity blood pressure cuff Lower extremity blood pressure cuff
Serotonin and Risk-Taking Behavior Serotonin and Risk-Taking Behavior
Effleurage to transition to lower leg-distal to proximal. Apply effleurage with moderate pressure to ... Effleurage to transition to lower leg-distal to proximal. Apply effleurage with moderate pressure to ...
Anterior & Posterior View of Lower Limb (Extremity) Anterior & Posterior View of Lower Limb (Extremity)
Relative lifetime risk of schizophrenia Relative lifetime risk of schizophrenia
Video: Introduction to Epilepsy

For a complete list of videos, visit our video library