Kedran is indifferent between option A, which gives her $10,000 for sure, and option B, which gives her $5,000 with probability 0.4 or $15,000 with probability 0.6. Kedran's cost of risk for option B is
A) zero.
B) $1,000.
C) $5,000.
D) $10,000.
B
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The air route from Dallas to Mexico City is served by more than one airline. The demand for tickets from American Airlines for that route is probably
A) inelastic but more elastic than the demand for all tickets for that route. B) elastic and more elastic than the demand for all tickets for that route. C) inelastic and less elastic than the demand for all tickets for that route. D) elastic but less elastic than the demand for all tickets for that route.
Which of these government financing methods is generally the least inflationary?
A) Printing currency B) Borrowing from the banking system C) Borrowing from the central bank D) Borrowing from the non-bank public
Which best describes the Federal Reserve district banks?
A) They are private ventures. B) They are government ventures. C) Some are private while others are government. D) They are private-government joint ventures.
The shapes of the curves in the AS/AD model are based upon the:
A. principle of opportunity cost. B. relationship between the price level and total output. C. principle of substitution. D. relationship between a single good and its price.