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konstantin123 [22]
3 years ago
5

Nina has a convex utility of wealth function, u(x). She is contemplating two prospects, L and M, where L is a mean preserving sp

read of M. Which of the following statements is therefore true?
a. Nina will prefer M to L.
b. Nina will prefer L to M.
c. Ninaâs ranking of L and M cannot be determined without more information.
d. Nina must be risk averse, but that is the most one can say.
Business
1 answer:
Lerok [7]3 years ago
6 0

Answer:

b. Nina will prefer L to M.

Explanation:

Convex utility of wealth indicates that an individual tends to be comfortable with taking risks.

A concave utility function shows an aversion for risk.

A mean preserving spread occurs when one variable has greater variance than another but they both have the same mean.

In the given scenario prospect L will have a greater variance than prospect M since it is a mean preserving spread.

Given Nina's risk taking preference she will most likely take prospect L that offers more variability over prospect M

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Calculate the number of atoms in each sample. a. 14.955 g Cr b. 39.733 g S c. 12.899 g Pt d. 97.552 g Sn
Hoochie [10]

Answer:

(a) 1.5×10^23 atoms

(b) 7.47×10^23 atoms

(c) 3.98×10^22 atoms

(d) 4.93×10^23 atoms

Explanation:

Number of atoms = number of moles × 6.02×10^23

(a) 14.955 g Cr = (14.955/60) × 6.02×10^23 = 1.5×10^23 atoms

(b) 39.733 g S = (39.733/32) × 6.02×10^24 = 7.47×10^23 atoms

(c) 12.899 g Pt = (12.899/195) × 6.02×10^23 = 3.98×10^22 atoms

(d) 97.552 g Sn = (97.552/119) × 6.02×10^23 = 4.93×10^23 atoms

4 0
3 years ago
A year ago, you invested $12,000 in an investment that produced a return of 16%. What is your approximate annual real rate of re
Natali [406]

The approximate annual real rate of return is 14%.

16% - 2% = 14%.

Rate of Return = [ (Current Value − Initial Value) ÷ Initial Value ] × 100. Let's say you own a stock that started at $100 and went up to $110. Now you want to find out the rate of return. In our example, the calculation would be [ ($110 – $100) ÷ $100] x 100 = 10.

“The real rate of return formula is the sum of one plus the nominal rate divided by the sum of one plus the rate of inflation, which is then subtracted once. The real rate of return formula can be used to determine the effective rate of return on an investment after adjusting for inflation.” Real returns = (1 + nominal rate/1 + inflation rate) – 1

Rate of return = ( (value of investment after one year - initial investment) / initial investment) x 100 percent. Analyze your investment to obtain the values ​​necessary to calculate its initial rate of return. For example, consider a $25,000 investment that grows to $28,500 after one year.

Leran more about Rate of Return here brainly.com/question/24232401

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7 0
1 year ago
Koczela Inc. has provided the following data for the month of May:
scZoUnD [109]

Answer:

$234,000

Explanation:

cost of goods manufactured = beginning work in process + direct materials + direct labor + manufacturing overhead cost applied - ending work in process

cost of goods manufactured = $25,000 + $65,000 + $95,000 + $69,000 - $20,000 = $234,000

cost of goods sold = beginning finished inventory + cost of goods manufactured - ending finished inventory + underapplied overhead  

cost of goods sold = $54,000 + $234,000 - $58,000 + $2,000 = $232,000

7 0
3 years ago
Alma is in the business of dairy farming. During the year, one of her barns was completely destroyed by fire. The adjusted basis
photoshop1234 [79]

Answer:

$18,750

Explanation:

Given:

Adjusted amount of loss = $90,000

Fair market value = $75,000

Insurance amount received = 95% of fair Market value

Adjusted gross income = $40,000

<u>Computation of business loss:                        </u>

<u>Particular                                             Amount </u>

Adjusted amount of loss                     $90,000

Less: Insurance amount received      $71,250

<u>($75,000 × 95%)                                                  </u>

<u>Business loss                                       $18,750 </u>

Therefore, the current year deduction is $18,750

6 0
3 years ago
Condensed financial data are presented below for the Phoenix Corporation:
Solnce55 [7]

Answer:

Part 1.

3.1 times

Part 2.

a. total assets

Part 3

d. the company's ability to generate sufficient cash to repay debt when due.

Explanation:

<u>For Part 1</u>

Inventory turnover measures the activity of liquidity of a company`s inventory. The higher the ratio in comparison, the more efficient the inventory is managed.

<em>Inventory turnover = Cost of Sales ÷ Inventory</em>

therefore,

Inventory turnover = $982,500 ÷ $ 312,500 = 3.1 times

<u>For Part 2</u>

In a common-size Balance Sheet, each item is expressed as a percentage of total assets whereas in a common size Income Statement, Sales revenue is expressed as 100 % and every other item is expressed as a percentage of sales revenue.

<u>For Part 3</u>

Solvency or Liquidity is the ability of short term assets to cover short term liabilities. Also put, it is  the company's ability to generate sufficient cash to repay debt when due.

5 0
3 years ago
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