An Investor Is Indifferent Between Receiving $8,000 or a Gamble

question 14

Multiple Choice

An investor is indifferent between receiving $8,000 or a gamble where there is a 50% chance of getting $0 and a 50% chance of getting $20,000. The investor is

• A) risk averting.
• B) risk taking.
• C) a speculator.
• D) risk neutral.

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Definitions:

Income From Operations

The profit generated from a business's regular core business operations, excluding any investment and financing activities.

Locomotive Division

A specialized business unit within a company that focuses on the design, manufacture, or maintenance of locomotives and related equipment.

Profit Margin

The percentage of revenue that turns into profit after all expenses have been deducted.

Mason

A skilled tradesperson who works with brick, stone, and other durable materials to build or repair structures.