A risk-neutral individual will make investment decisions purely based on net present value because
A) she doesn't care about utility.
B) because utility is a linear function of wealth.
C) she loves to take risk.
D) net present value is always more than expected utility.
B
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If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000 . and checkable deposit liabilities of $400,000 . what is the maximum amount of money this bank could create (add to the money supply)?
a. $420,000 b. $100,000. c. $80,000 d. $2,100,000.
In monopolistically competitive market structure, because each good sold in the market is ____, each firm is considered a ____
a. slightly different; price maker b. slightly different; price taker c. the same; price maker d. the same; price taker
If real GDP is increasing more rapidly than population,
a. population must be declining. b. the country will have to export more than it imports. c. the general level of prices must be increasing. d. per capita real GDP will be increasing.
For developed countries, more price supports and subsidies are provided to agriculture worldwide than to any other sector of the economy.
Answer the following statement true (T) or false (F)