What Term Best Describes an Agent Who Prefers a Sure

question 14

Multiple Choice

What term best describes an agent who prefers a sure thing to a gamble of equal expected value?

• A)Risk sharing
• B)Risk seeking
• C)Risk neutral
• D)Risk averse
• E)Risk premium

Comprehend and apply the concept of geometric mean to estimate future rates of return or growth.

Identify measures of central location and their sensitivity to extreme values.

Describe the relationship between distribution shape and the location of the mean in a histogram.

Compute and analyze the mode in a given data set.

---

Definitions:

GAAP

Generally Accepted Accounting Principles are a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements in the United States.

Capitalize

The accounting practice of recording a cost or expense on the balance sheet for purposes of delaying full recognition of the expense over time through depreciation or amortization.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Minimum Lease Payments

The lowest amount that a lessee is expected to pay over the lease term for the lease of property, plant, or equipment.