Question 48 When looking at utility rather than money, what does the outcome of a fair bet look like? O The potential drop in utility is greater than the potential increase in utility. O The potential drop in utility is smaller than the potential increase in utility. O The potential drop in utility is equal to the potential increase in utility. O There is no expected change in utility Question 49 Risk spreading explains why most large companies have O low profit rates. O high profit rates. O few shareholders. many shareholders Question 50 In a fair bet, the: O outcome is known in advance so there is no uncertainty. O expected return is high enough to induce risk-averse people to accept the risk O expected winnings exactly offset the expected losses. O expected winnings are greater than the expected losses

Question 48 When looking at utility rather than money, what does the outcome of a fair bet look like? O The potential drop in utility is greater than the potential increase in utility. O The potential drop in utility is smaller than the potential increase in utility. O The potential drop in utility is equal to the potential increase in utility. O There is no expected change in utility Question 49 Risk spreading explains why most large companies have O low profit rates. O high profit rates. O few shareholders. many shareholders Question 50 In a fair bet, the: O outcome is known in advance so there is no uncertainty. O expected return is high enough to induce risk-averse people to accept the risk O expected winnings exactly offset the expected losses. O expected winnings are greater than the expected losses

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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