Answer:
B. As a risk-averse investor
Explanation:
B. As a risk-averse investor is a correct option . Risk-averse investors can invest in higher risk opportunity only if it offers higher expected return .
Answer:
The annuity is worth $4100.20 today and if we increase the rate of return, from 7% to 8% the value of the annuity falls to $3992.71.
Explanation:
The step by step solution for the given problem is attached with the image.
The value of annuity will decrease if we increase the rate of return, from 7% to 8%. Future cash flows are discounted using the rate of return, and the higher the discount rate, the lower the present value of the future cash flows.
Deadweight loss is a type of economic inefficiency when a good or service is not at its economic equilibrium (where supply equals demand). This loss may be experienced because of a tax or subsidy, or because of market power, such as a monopoly. Economists refer to deadweight loss when they want to show the negative effects of certain policy decisions that are less than optimal.
Journal entries
Dr Allowance for uncollectible account $41,000
Cr Account Receivable $41,000
Dr Account receivable $3,600
Cr Allowance for uncollectible account $3,600
Dr Cash $3,600
Cr Account receivable $3,600
Answer:
The establishment of social welfare programs.
Explanation:
This is the answer for Ap3x.
