Which Three Following Statements Are Correct

question 26

Multiple Choice

Which three following statements are correct?

• A) Risk averters prefer a more certain return to an alternative with an equal but more risky expected outcome.
• B) Most investors in shares are risk averters.
• C) Risk averters demonstrate diminishing marginal utility.
• D) Risk averters expect companies to behave as risk lovers.

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Definitions:

Garbage In, Garbage Out

A principle in computing and information sciences that suggests the quality of output is determined by the quality of the input data.

Double-Entry Bookkeeping System

An accounting methodology that records each transaction twice, as both a debit and a credit, to ensure the accounting equation balances.

Single-Entry System

An accounting method where each transaction is recorded in a single account, offering a simplistic view of finances.

Data Entry

The process of inputting information or data into a computer system or database.