A Risk-Neutral Individual _____

question 18

Multiple Choice

A risk-neutral individual _____.

• A)prefers a sure return to an uncertain prospect generating the same expected return
• B)is indifferent between a sure return and an uncertain prospect generating the same expected return
• C)will forgo a sure return in favor of an uncertain prospect generating the same expected return
• D)will avoid all risky investments no matter what the return

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Definitions:

Rand Formula

An option in a collective agreement enabling employees to retain the right not to join the union, though they are still required to pay union dues; also known as an agency shop.

Check-Off Provision

A provision in a collective agreement whereby employees agree to have the employer deduct union dues from their payroll.

Non-Competition Clause

A contract provision preventing an employee from entering into competition with their employer during or after their employment period.

Proprietary Interest

The ownership interest or rights in something, often associated with property or intellectual rights.