A Decision Maker Can Be Described with Utility Which Is

question 52

Multiple Choice

A decision maker can be described with utility which is only a function of income.If this function is linear,the decision maker is

• A) risk-averse.
• B) risk-neutral.
• C) risk-loving.
• D) risk-gaining.

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Definitions:

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets, with voting rights.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged in a current transaction between willing parties.

Par Value

A nominal or face value assigned to a share of stock by the issuing company, which has legal and accounting implications but often little relation to the market value.

Consolidated Receivables

Consolidated receivables refer to the total amount owed to a company by its customers, after combining the amounts across different divisions or subsidiaries.