Answer:
Stock A will be preferable for the risk averse Investors.
Explanation:
The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.
(Special comments:
It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)
Answer:
Assets= 15,000
Liabilities= 10,000
Owner's equity= 5,000
Explanation:
When he invests 5,000 of his own money that 5,000 is an asset as it is cash and the 10,000 he borrows is also an asset as it is cash. The liabilities are 10,000 as he has to pay 10,000 back and it is a loan so it is a liability also.
The owners equity is 5,000 as he invested 5,000 of his own money in the business and that is owners equity.
Answer:
Confirmation bias
Explanation:
The reason is that the business managers who always see the one side of the story are biased because they don't see what the person whom they rejected was doing with its life and capabilities that he developed that might be the best resouce for the company. This consecutive result which forms a perception that the person is right is often called confirmation biasness.
