Figure 27-2

question 30

Multiple Choice

Figure 27-2.The figure shows a utility function for Britney.
-Refer to Figure 27-2.From the appearance of the utility function,we know that

• A)Britney is risk averse.
• B)Britney gains less satisfaction when her wealth increases by X dollars than she loses in satisfaction when her wealth decreases by X dollars.
• C)the property of diminishing marginal utility applies to Britney.
• D)All of the above are correct.

---

Definitions:

Paid-in Capital

Refers to the funds raised by a company through the sale of its shares to investors, representing the capital that shareholders have invested directly into the company.

Treasury Stock

Refers to shares that were once part of the outstanding shares but were bought back by the company and are now held in the company's treasury.

Par Value

A nominal value assigned to a share of stock by the company's corporate charter, unrelated to the market value.

Stated Value

A fixed dollar amount assigned to each share of no-par stock, designated by the board of directors of a company.