![skyler1muir](/avatars/45740.jpg)
skyler1muir
09.07.2019 •
Business
Erik is an investor with $5,000 available for investment. he has the following three investment possibilities from which to choose: option | scenarios1. | keep the $5,000 in cash for one year.2. | invest in a friend’s business with a 50% chance of getting $10,000 after one year and a 50% chance of getting nothing.3. | invest in a relative’s business with a 30% chance of getting $15,000 after one year, 20% chance of getting $2,500 after one year, 50% chance of getting nothing. suppose erik cares about the risk involved in options 2 and 3, and decides to select option 1 because it has no risk. which of the following statements would be true about erik? a. he is risk-averse. b. he is risk-neutral. c. he is risk-loving. d. none of these descriptions is accurate. later, while examining the same investment alternatives, erik’s brother, devin, clearly expressed a preference for option which of the following statements is true about devin? a. he is risk-averse. b. he is risk-neutral. c. he is risk-loving. d. none of the above.
Solved
Show answers
More tips
- H Health and Medicine Choosing the Right Contraception Method: Your Ultimate Guide...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- C Computers and Internet How to Learn to Type Fast?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- H Health and Medicine How to Cure Adenoids?...
Ответ: