In a Study of Banking by Asset Size Over Time,we

question 7

Multiple Choice

In a study of banking by asset size over time,we can find which asset sizes are tending to become more prominent.The size that is becoming more predominant is presumed to be least cost.This is called:

• A) regression to the mean analysis.
• B) breakeven analysis.
• C) survivorship analysis.
• D) engineering cost analysis.
• E) a Willie Sutton analysis.

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Definitions:

Risk Averse

The tendency of individuals to prefer certainty over uncertainty, avoiding risks where possible, especially in financial decisions.

Dividend

A portion of a company's earnings distributed to its shareholders.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender or the rate earned on a deposit or investment.

Present Value

The present value of a future amount of money or series of cash flow using a given rate of return.