A Manager's Utility Function Is Identified to Be a Concave

question 36

Multiple Choice

A manager's utility function is identified to be a concave curve.Which of the following investment opportunities is likely to be chosen by him?

• A) investment in a real estate company that promises attractive returns
• B) venture capital to a small business, administered by a group of young entrepreneurs
• C) a bond issued by the federal government that offers guaranteed interest of 2 percent
• D) investing in a large corporation that is planning to extend its business overseas

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Definitions:

Medical Treatment

The management and care of a patient to combat disease or disorder, including procedures, medications, counseling, and surgery.

Isolated

Feeling or being separated from others, can refer to physical isolation or a sense of disconnection from social interactions and relationships.

Psychological Experiences

Internal personal events and phenomena that occur in the mind as part of one's mental and emotional life.

Menopause

The period in a woman's life, typically between 45 and 55 years of age, when menstruation ceases.