If A and B are mutually exclusive events with P(A) = 0.75, then P(B):

a. can be any value between 0 and 1
c. cannot be larger than 0.25
b. can be any value between 0 and 0.75
d. equals 0.25


C

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Suppose a discount bond costs $5,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities:  b:$5,000 $5,500 $6,000 $6,500 $7,000  Probability:0.1 0.2 0.3 0.2 0.2 ? a.Calculate the return (in percent) for each value of b. (Note: you may just calculate the total return and not worry about how this is split up between current yield and capital-gains yield.)  b.Calculate the expected return.  c.Suppose an investor has a choice between buying this security or purchasing a different security that also costs $5,000 today, but pays off $5,500 with certainty in one year. How is an investor's choice of which security to purchase related to her degree of risk aversion?

What will be an ideal response?

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Indicate whether the statement is true or false

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Exhibit 22-5 Daniel Company, having a fiscal year ending on December 31, discovered the following errors in 2016: · A collection of $12,000 from a customer for rent related to January, 2017, was recorded as revenue in 2016. · Depreciation was understated by $600 in 2016. · The January 1, 2015, inventory was overstated by $10,000. · The January 1, 2016, inventory was understated by $6,000. ·

Insurance premiums of $2,000 that relate to 2017 were expensed in 2016 when paid. ? Assume no other errors have occurred and ignore income taxes. ? Refer to Exhibit 22-5. Net income for 2016 was A) overstated by $4,600. B) overstated by $16,600. C) understated by $5,400. D) understated by $5,200.

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A study found that Slovenian managers tended, on average, to be more risk taking and individualistic than U.S. managers.

Answer the following statement true (T) or false (F)

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