Risk premium is the ________ amount that a ________ person would pay to avoid ________
A) maximum; risk-averse; taking a risk
B) maximum; risk-neutral; losing everything
C) minimum; risk-averse; taking a risk
D) minimum; risk-loving; losing everything
A
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What will be an ideal response?
Fred's Widget Company has purchased $500,000 in equipment, which can be sold for a salvage value of $300,000 at any time. The best interest rate on alternative investments is 5%
What is the cost of using this machinery for one year? How would your answer be different if the machinery had not yet been purchased?
Answer the next question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.AssetsLiabilities & Net WorthReserves$30 Checkable Deposits$300Loans130 Stock Shares130Securities70 Property200?Refer to the above data. The commercial banking system has excess reserves of:
A. $60 billion. B. $30 billion. C. $70 billion. D. $0.
A $1 billion increase in investment will cause a:
A. (1/MPS) billion increase in GDP. B. (MPS) billion increase in GDP. C. (1 - MPC) billion increase in GDP. D. (MPC - MPS) billion increase in GDP.