Answer: ELYSE. TSA. AFP. <—- the one that has that in the first Column
Explanation:
TSA is very similar to AFP
<u>Solution and Explanation:</u>
As the utility function is concave in shape, so person is risk averse. Thus, he will not accept the gamvle.
The difference between utility at point A&C = 70 minus 65 = $5, is less than a the difference between A&B = 65 minus 55 = $10
<u>MCQ:
</u>
Answer is option a&d - risk averse people fear a lot for losing money, thus they overestimate the probability of loss
Since, shape of utility function is concave, hence the double derivative of utility with respect to wealth is negative, so utility falls at an decreasing rate , as wealth increases
Answer: $0
Explanation:
Layla qualifies for $8,000 in housing credits.
These are withdrawn at $500 for every $1,000 she earns above the wage limit of $26,500
Layla's annual income = 35,000 + 7,500
= $42,500
Amount earned above limit = 42,500 - 26,500
= $16,000
Amount of housing credit withdrawn is $500 per thousand so for $16,000, $8,000 will be withdrawn from her housing credit.
Housing credit = 8,000 - 8,000
= $0
Answer:
IRR is 18.25%
Annual amount is -$0.225 which closest to zero dollar,because at irr the investment return is zero
Explanation:
The formula for IRR in excel is :irr(values)
The formula can be applied to the cash outflow of $4,000 and cash inflow of $9,250 in five years' time as follows
Years Cash flow
0 -$4,000
1 $0
2 $0
3 $0
4 $0
5 $9,250
irr(-$4000 to $9,250)
irr is 18.25%
The amount of receivable each year can be computed using pmt formula in excel
=pmt(rate,nper,-pv,fv)
rate is the irr of 18.25%
pv is -$4000
fv is the future amount 0f $9,250
=pmt(18.25%,5,-4000,9250)
pmt=-$0.225 which closest to zero amount
Basically saying when a relationship between 2 people is boosted, there is a balance between them. The more equal the rewards, the more permanent the relationship.
