Here, the investor is risk-neutral.
A=0
Thus, U = E(r).
We have the requisite information to answer the question, hence option E is eliminated.
Investment Mean Return Std Dev U
1 0.12 0.3 0.12
2 0.15 0.5 0.15
3 0.21 0.16 0.21
4 0.24 0.21 0.24
Thus, it can be seen that investment 4 given the maximum utility, and is thus the selected investment for a risk neutral investor. Thus, option D.
What options does a risk-averse individual select?
- When someone is considering different investment options, they are said to have a risk-neutral mentality.
- One is considered to be risk neutral if they just consider possible profits, regardless of the danger.
- To assess profit without considering risk may look like a dangerous behavior by nature.
Learn more about risk-neutral person
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<u>The complete question is - </u>
Use the below information to answer the following question Investment WN - Expected Return E() 0.12 0.15 0.21 0.24 Standard Deviation 0.3 0.5 0.16 0.21 U= E(r)-(A/2)s2 Which investment would you select if you were risk neutral? A. 1 B.2 C. 3 D. 4 E. Cannot be determined from the information given. If you are risk neutral, your only concern is with return, not risk.
Answer:
B. Clothing expenses
<span>Sue did take appropriate actions as the site coordinator. Sue saw Aaron on the news under the suspicion that he committed a serious crime. It would not reflect well on her business to have a criminal being associated with it. If Sue saw Aaron on the news, it is likely others would have seen him too and choose not to use her site, in turn having a negative effect on the site.</span>
Answer:
When a firm shifts from transactional to value-added and relationship approach of selling the following changes takes place in the way the salesperson approaches he customer and their job:
- Whilst the objective the transactional approach is to make a sale, the relational approach is to build trust. When a customer trusts their sales person, it means they hold the sales person to put their interests first or at least take care of their interests whilst taking care of their too.
- The relational approach is more focused on retaining existing customers than making new ones. This is the obverse of a transactional relationship. It is said that it costs about 5 times extra to get a new client than what it takes to keep one. Thus the smart company focuses on honing this skill until they are better off for it.
- in a transactional approach, the nature of the relationship is relatively short, whilst it is stronger and longer in a relational approach. A Relational approach to selling can sometimes occur in the grey line between personal and official relationships.
- In a relationship-based approach to selling, the firm focuses on adding value in the primary areas of concern for the client as well as other areas. For example, a client - the CEO of a start-up requires recruitment, onboarding, and standard operating procedure as services from a HR firm. As a relational HR person, the best way to proceed would be to give him exactly what he wants and stil go ahead to add more value in other areas by giving templates of letter of appointment to the client.
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Answer:
The correct answer is letter "B": direct.
Explanation:
Direct Costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. Examples of direct costs are direct labor and materials, manufacturing supplies or even commissions out of sales.
