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3 years ago

If Joanna is risk averse, then:__________.

Business

1 answer:

Rina8888 [55]3 years ago

4 0

Answer:

c. she dislikes bad things more than she likes comparable good things.

Explanation:

In business sense where this falls to place, a risk aversed person is someone who invests in stock, trades and other business with an aim to possibly minimize any form of losses in his or her tine in doing these businesses. S/he is likely or can comfortable do a business and be sure of little interest or returns rather than venturing or risking trying deals that outcomes or returns are totally uncertain to the investor. Therefore after evaluations of this kind, it is easily denoted that being a risk taker could possibly be the opposite of being risk averse.

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what is the present value of the following cash-flow stream if the interest rate is 6%? note: do not round intermediate calculat

Anettt [7]

The present value of the cash-flow stream if the interest rate is 6% is $323.03.

<h3>What is the interest rate?</h3>

The interest rate can be defined as the amount or the percentage that is being fixed or fluctuating depending upon the condition of the agreement. The interest is calculated on the amount that is being loaned or given to the individual or a company.

According to the given question, the interest rate is 6%

1st year $120

2nd year $320

3rd year $220

Now, by applying the formula for the present value:

$\rmPV = \dfrac{fv}{(1 + r)^t}$

$\dfrac{120}{1.06} + \dfrac{320}{(1.06)^2} + \dfrac{220}{(1.06)^3}$

= 113.20 + 284.96 + 184.87

= 323.03

The present value of the cash flow stream is $323.03

Learn more about interest rate, here:

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7 0

1 year ago

A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $

11111nata11111 [884]

Answer:

D. Less; Less

Explanation:

Given that

CPI in 2005 = 1.68

Wage in 1972 = 7200

Wage in 2005 = 30,000

CPI in 1971 = 0.418

Therefore,

Real wage in 1972 = wage in 1972/CPI in 1972

= 7200/0.418

= $17,224.88

Real wage in 2005 = wage in 2005/CPI in 2005

= 30000/1.68

=$17,857.14

Thus, from the given data 1972 job paid LESS in nominal terms (7200 < 30000) and LESS in real terms (17,244.88 < 17,857.14) than the 2005 job.

6 0

2 years ago

A company's common stock shares are expected to bring a 13 % return to their investors in case of "recession" state of the econo

Ludmilka [50]

Answer:

The expected rate of return is 8.65%

Explanation:

The expected return on a stock can be calculated by multiplying the return in each scenario by the probability of that scenario. This will provide the expected value of the return based on all these scenarios. Thus, the rate of return is,

Rate of return = rA * pA + rB * pB + rC * pC

Where,

r represents the return in each scenario
p represents the probability of each scenario

The probability of normal state is = 1 - 0.45 - 0.05 = 0.5

Rate of return = 0.13 * 0.45 + 0.06 * 0.5 + (-0.04) * 0.05

Rate of return = 0.0865 or 8.65%

3 0

3 years ago

Juan would like to give his

Nitella [24]

Answer:

7%+18=10,000

Explanation:

I think that's how it goes u just need to solve it

3 0

2 years ago

Pedro is considering whether to invest in a startup. Before investing, Pedro sends a technical and industry expert to meet with

cricket20 [7]

Answer:

The correct option is C,due diligence

Explanation:

Due diligence involves a thorough examination and appraisal of a prospective business venture undertaken by a would-investor in order to determine the value of the target business and most importantly to substantiate the information provided by the current business owner such the prospective investor can decide whether or not the business is worth investing in.

Pedro has just carried a due diligence by committing an industry expert to examine closely the prospective business.

5 0

2 years ago