In Which of the Following Games Is It Conceivable That

question 277

Multiple Choice

In which of the following games is it conceivable that a risk-averse person might be willing to play?

• A) a game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1
• B) a game where she has a 50 percent chance of winning $100 and a 50 percent chance of losing $100
• C) a game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1
• D) a game where she has a 40 percent chance of winning $1 and a 60 percent chance of losing $1

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Definitions:

Due Diligence

Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or transaction with another party.

Registration Statement

A statement required by the Securities and Exchange Commission to indicate details about a business selling securities.

Cost of Repair Rule

A legal principle that allows a party suffering from property damage to recover the expenses necessary to restore the property to its pre-damage condition.

Negligent Credentialing

Occurs if a hospital has retained a physician that the governing body of the hospital knew or should have known was incompetent.