I had to look for the options and here is my answer:
Based on the given situation above, if the opinion of a given investor in which it is expected tat there will be an exceeding return, this would show that the investor thinks that the management might not be maximizing the price per share. Hope this helps.
You have to have confidence in order to start a business
Answer:
A credit to unearned warranty revenue of $1400
Explanation:
Every customer that purchases a paging system is entitled to a 180 day warranty on product defects. Hence since an addition two years of protection was purchase by the customer, the journal entry must show that this warranty is not the 180 days earned one, but an unearned warranty which has been duly paid for by the customer.
The expected annual medical expenses of a high-risk person is $3000 per year while that of a low-risk person is $1000 per year.
The expected annual medical expenses of a high-risk person will be calculated as:
= Probability of falling ill × Expenses in case of illness
= 30% × $10000
= 0.3 × $10000
= $3000
The expected annual medical expenses of a low-risk person will be calculated as:
= Probability of falling ill × Expenses in case of illness
= 10% × $10000
= 0.1 × $10000
= $1000
It should be noted that in a situation where the individuals are risk neutral, the low-risk persons will not buy insurance as only the high-risk individuals will be expected to buy<em> insurance.</em>
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