Answer:
Jorge is not risk-averse
Explanation:
Risk averse means to reluctant to take risk
Since theres a 80% chance that Jorge will get laid off and end up with a job that will pay him $10000 less is very risky instead where he'll earn $30000 where the chance is 20% that he'll get the job.
Bond valuation:
<span>Par value = Maturity value = FV = $1,000 </span>
<span>Coupon rate = 7.5% </span>
<span>Years to maturity = N = 19 </span>
<span>Required rate = I/YR = 5.5% </span>
<span>(Coupon rate)(Par value) = PMT = $75 </span>
<span>PV = $1,232.15</span>
Answer:
According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.
Explanation:
To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.
This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.
Answer: False
Explanation:
False.
Long term debt is a debt owed by an economic entity which could either be the inividual, a business or the government and such debts are expected to mature in a period of at least one year.
It should be noted that the long term debt isn't reported in fund level financial statement but rather it's reported in government wide statements.
