Sam Is 38 He Is Unemployed and Lives with a Family Member

question 56

Multiple Choice

Sam is 38. He is unemployed and lives with a family member. One afternoon, he shows his neighbor, Sean, a YouTube video of his cousin performing a mediocre rap. "I wrote that!" Sam brags. "We're going to make it big real soon! I write a lot of things; I'm in the Poets' Society of Canada." "Well, I'm leaving to go the gym," Sean says, hoping Sam will leave. Sam responds, "You can work out all the time but you'll never surpass me." Sam then describes the expensive brand-name athletic shoes he owns. Sam may have _____ personality disorder.

• A) schizoid
• B) borderline
• C) narcissistic
• D) antisocial

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Definitions:

Risk-Adjusted Rates

In capital budgeting, a rate used in place of the cost of capital to reflect especially risky projects.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Certainty Equivalent NPV

A method of valuing risky projects or investments by adjusting the expected cash flows to reflect the investor's risk aversion, providing a 'risk-free' net present value.

Cost of Capital

The minimum return on investment a business necessitates to uphold its market value and entice financial inflow.