Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Risk Aversion and Income
- Variability in potential payoffs increases risk premium.
- Example:
* The expected income is $20,000, but expected utility falls to 10.
Expected utility = .5u($) + .5u($40,000)
= 0 + .5(20) = 10
* The certain income of $20,000 has a utility of 16.
* If person is required to take the new position, the utility of them will fall by 6.
* The risk premium is $10,000 (that is they would be willing to give up $10,000 of the $20,000 and have same E(u) as the risky job.
* Thus, it can be said that greater the variability, greater the risk premium.
* Indifference Curve
- Combinations of the3 expected income & standard deviation of income which yield the same utility.
differance between capitalism and socialism
Balance of payments account: The foreign exchange market is an organizational setting within which individuals, business firms, banks etc buy and sell foreign currency. It has
Explain how Monetarist economics views the role of markets and government intervention in fighting business cycles. Monetarist economics believes that the government should fol
What are the Policies and Long-Run Growth In many concerns it is decidedly odd that world distribution of output per worker is as unequal as it is. Migration, World trade and f
Change in consumer income: A change in consumer income may bring about a change in the quantity demanded of a good or service. However, the direction of change in quantity deman
the law diminishing marginal utility explain through flow chart
the price elasticity for gizmos is known to be 1, if sellers of gizmos increase their
"price is becoming cheaper,yet the demand for car is not rising".does it mean law of demand is not operative?
how to compute the price of a laptop increase of 20% and there is a 40% drop in the aquantity demanded
TC = 1q^3 - 40q^2 + 840q + 1800 Price= $750
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd