Microeconomics TABLE OF CONTENTS Part I: Sum of all probabilities of possiblity
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Added on 2021-11-18
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Microeconomics TABLE OF CONTENTS Part I 3 1 3 2 3 3 3 4 4 5 3 Part II 4 6 4 7 4 References 6 Part I 1 This statement is uncertain, as investment decision is not merely based on return provided by security as risk is equally important for investors (mrohorolu and Tzel, 2014). , the risk curve shows the risk premium between the risk curve (dotted on the graph), which is the risk/return ratio of
Microeconomics TABLE OF CONTENTS Part I: Sum of all probabilities of possiblity
Added on 2021-11-18
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Microeconomics
TABLE OF CONTENTS Part I...........................................................................................................................................3 1..............................................................................................................................................3 2..............................................................................................................................................3 3..............................................................................................................................................3 4..............................................................................................................................................3 5..............................................................................................................................................3 Part II..........................................................................................................................................4 6..............................................................................................................................................4 7..............................................................................................................................................4 References..................................................................................................................................6
PART I 1 This statement is uncertain, as investment decision is not merely based on return provided by security as risk is equally important for investors (İmrohoroğlu and Tüzel, 2014). Therefore, investment option with highest expected return will not always be selected as not all investors are risk averse. 2 True. Sum of all probabilities of possible events in mathematics or statistics is considered to be one (Dudley, 2018). 3 False. A risk averse person always aim to generate high return by taking risk on the investment. Further, gambling is highly risk associated and tend to provide high returns in contrast to risk taken by person (Deck, Lee and Reyes, 2014). 4 The provided statement is true as in uncertain situation it seem intuitive for individuals to maximize their expected utility as it is directly associated with their level of satisfaction (Diamond and Rothschild, 2014). 5 Saving by taking risk $100/60 minutes*20minutes =$33.33 Probability of being caught 1/10 There probable possibility of fine: =1/10*50(Value of fine) $5 No statement is not true as this fine is not sufficient to deter person from double parking as their earning capacity is higher than probability of imposition of fine.
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