Suppose you face a choice between a certain income of $2,000, or a 50-50 chance of income of $1,000 or $3,000. Suppose you prefer the certain $2,000. You are risk averse.
a. True
b. False
Suppose that a disease affects 5% of the population and that everyone is equally likely to get the disease. Treatment for this disease costs $38,000. Assume that this disease, and necessary treatment, represent the only healthcare costs in this population. The expected cost of healthcare is $. If people to pay the expected cost of healthcare with certainty, rather than take on the 5% risk of having to pay the full cost of the treatment, they are risk averse.
Answers: 3
Business, 22.06.2019 09:50, niele123
The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?
Answers: 2
Business, 22.06.2019 16:10, ilovemusicandreading
The brs corporation makes collections on sales according to the following schedule: 30% in month of sale 66% in month following sale 4% in second month following sale the following sales have been budgeted: sales april $ 130,000 may $ 150,000 june $ 140,000 budgeted cash collections in june would be:
Answers: 1
Suppose you face a choice between a certain income of $2,000, or a 50-50 chance of income of $1,000...
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