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MakcuM [25]
3 years ago
9

Let L1 and L2 be two lotteries with the same expected return. Suppose L2 has a larger variance and you are risk averse. Would yo

ur CE for L2 be larger or smaller than your CE for L1?
Business
1 answer:
WITCHER [35]3 years ago
6 0

Answer:

option 2)  smaller

As CE is the amount which if the agent gets with certainty, then agent will be indifferent between playing lottery or getting that amount with certainty

So L2 is more risky, & agent is risk averse, so agent will be ready to accept a lower amount with certainty ( as compared to the amount for a safer option : L1)

So CE of L2 will be lower

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Jones Co. started the year with no inventory. During the year, it purchased two identical inventory items at different times. Th
Over [174]

Answer:

FIFO LIFO Weighted average

Cost of goods sold 1,060 1,380 (1,060 + 1,380)/2 = $1,220

Ending inventory 1,380 1,060 (1,060 + 1,380)/2 = $1,220

Explanation:

Attached is the tabulated solutions

6 0
3 years ago
If an employer chooses a per diem method of substantiation for travel expenses,
Ahat [919]

If an employer chooses a per diem method of substantiation for travel expenses, the meals and incidental expenses method requires actual cost records to substantiate lodging expenses.

Option E

<u>Explanation: </u>

The price of the meal and the additional expenses while travelling away from home for work purposes is deducted from an employee or self-employed person. The expense deduction generally requires the costs to be substantiated.

There has been, however, an optional form that prohibits receipts for these taxpayers.

The IRS releases Diem levels for different parts of the United States (see Notification 2015-63 on the subject of irs.gov). For just the intent of measuring a meal and an accessory deduction, taxpayers may use such per diem rates and will be required to prove it.

If an employer wants a method of proof of travel expenses by Diem, the meal and by-product procedure requires real cost records in order to prove accommodation expenses.

7 0
3 years ago
What is the price of a coupon bond that has annual coupon payments of $75, a face value of $1000, interest rate of 5%, and a mat
Citrus2011 [14]

$1,046.49.

The price of a coupon Bond that has periodic coupon payments of $ 75, a face value of  $ 1000, an interest rate of 5%, and a maturity of two times is $1,046.49.

Coupon Bond: A bond having tickets attached that reflect semiannual interest payments is known as a coupon bond, deliverer bond, or bond pasteboard. With coupon bonds, the issuer doesn't keep any records of the buyer, and no instrument has the buyer's name moreover.

The price of a coupon bond that has periodic coupon payments of $75, a face value of $1000, an interest rate of 5%, and a maturity of two times is $1,046.49.

To learn more about Coupon Bond, visit the following link:

brainly.com/question/26376004

#SPJ4

6 0
2 years ago
During 2017, Bolton Corporation acquired a mineral mine for $1,500,000 of which $200,000 was determined to be the salvage value
MAVERICK [17]

Answer:

$162,500

Explanation:

Depletion is used to expense the cost of extracting natural resources.

Depletion expense = (unit extracted in 2017 / total units that could be extracted) x (Cost- salvage value)

(1,500,000 / 12,000,000) x ( $1,500,000 - $200,000) = 0.125 × 1,300,000 = $162,500

I hope my answer helps you

8 0
3 years ago
Read 2 more answers
During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during h
bearhunter [10]

Answer:

Grew by 2%

Explanation:

Given: nominal GDP =12% positive value cause it grew by 12% during these years.

              Population grew by 4%

              GDP deflator = 6% positive value cause it also grew by 6%

Question says we must find real GDP per person for the 4 year term that the president has served for so we will use the formula to calculate GDP Deflator to actually solve for Real GDP as we know the formula is GDP Deflator= (nominal GDP per person%)/(Real GDP per person%)x100

So we already have the nominal GDP and the GDP deflator therefore we substitute to the above formula:

6% = (12%)/ (Real GDP per person percentage) x100, and now we solve for Real GDP per person%

Therefore we multiply both sides with Real GDP percentage and get:

Real GDP per person %( 6%) = 12% and then we divide both sides with 6%,

Therefore Real GDP is 2% so we also see that real GDP has actual grown by 2% because the GDP deflator grew instead of decreasing where nominal GDP is also positive so if we have a fraction where an answer is positive we know both fraction values must be positive pus if the GDP deflator increases both nominal and Real GDP increase and that’s the relationship they have.

4 0
3 years ago
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