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Andru [333]
1 year ago
8

individuals differ in risk aversion because of: group of answer choices differences in their insurance. moral hazard. adverse se

lection. differences in income or wealth.
Business
1 answer:
Gwar [14]1 year ago
5 0

Individuals differ in risk aversion because of differences in income or wealth.

  • Risk aversion is the propensity of people to choose outcomes with low uncertainty over those with high uncertainty, even when the average outcome of the latter is equal to or higher in monetary worth than the more definite event. This tendency is shown in both economics and finance.
  • Risk aversion is the tendency to avoid danger. A risk-averse investor is one who prioritizes money preservation over the potential for a higher-than-average return. Price volatility and investment risk are the same.
  • If someone would rather take the risk and maybe receive nothing than accept a definite payment (certainty equivalent) of less than $50 (for instance, $40), they are considered to be risk averse. If they have no preference between the wager and a specific $50 payoff, they are risk neutral.

Thus the correct answer is d.

Refer here to learn more about risk aversion: brainly.com/question/8394406

#SPJ4

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Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gather
Lostsunrise [7]

Answer:

$32,000

Explanation:

Net advantage = Annual operating cost

Net advantage = [(Old machine - New machine)*10 life] - New machine cost + Old machine cost

Net advantage = [($320000 - $240000)*10] - $800000 + $32000

Net advantage = [($80000)*10 - $768,000

Net advantage = $800,000 - $768,000

Net advantage = $32,000

So, the net advantage of replacing the old machine is $32,000

4 0
3 years ago
Which business model has traditionally been used by magazines
Andrej [43]
According to Quora dot com, US magazines are viewed as historically dependent on advertising revenue hence why subscriptions to magazines are historically very low as advertising is used to subsidise cover price or subscription cost.

With the general collapse of print publications in the US, particularly led by the drying up of physical newsstand presence, magazines have a harder time getting into consumer's hands. This means that advertisers are less likely to spend in a publication (readership decreasing) and then advertising revenues go down, making magazines less and less profitable.

I realize this is quit lengthy so I'd sum it up to saying the business model for magazines has traditionally been the selling of advertising space ... Not sure if this is what you're looking for
7 0
2 years ago
Read 2 more answers
To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For
Gnesinka [82]

Answer: See explanation

Explanation:

A bond’s (face value) is generally $1,000 and represents the amount borrowed from the bond’s first purchaser.

A bond issuer is said to be in (default) if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants.

A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a (sinking fund provision).

A bond’s (call provision) gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.

The face value is the dollar value of a security, or a stock's original cost. Default means when the bond issuer doesn't agree with the stated terms of the bond.

4 0
2 years ago
OSHA is an acronym that represents:
Svetach [21]
Your answer would be D.) Occupational safety and health administration 

5 0
3 years ago
If a consumer chooses not to perceive they are reaching ________.
Yuliya22 [10]
Quality value price reach consumer goods
8 0
3 years ago
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