INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 28

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-A mobile home is [less | more] likely to suffer a complete loss than a conventional house.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Account

A record that keeps track of financial transactions, investments, or the financial state of an individual, institution, or company.

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.

Risk Averse

A behavioral tendency to prefer avoiding losses over acquiring equivalent gains.

Present Value

The worth at present of an anticipated future cash amount or stream of payments, considering a particular rate of return.