Person requires greater return when risk increases

Assignment Help Financial Management

Reference no: EM13953894

If a person requires greater return when risk increases, that person is said to be:

A. risk seeking

B. risk averse

C. risk aware

D. risk indifferent

Reference no: EM13953894

Questions Cloud

What is the future value of this investment : Imagine homer simpson invested 100000 5 years ago at a 14% annual interest rate. if he invested an additional 2200 a year at the beginning of each year for 10 years at the same 14 % annual rate, how much money will homer have 10 years from now? if ho..

Considering the purchase of a new production machine : Part 1 Garcia's Truckin Inc. is considering the purchase of a new production machine for $200,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $50,000 per year. To operate the machine properly, wor..

A project requires an initial investment : A project requires an initial investment of $200,000 and expects to produce a cash flow before taxes of 120,000 per year for two years (i.e., cash flows will occur at t = 1 and t = 2). The corporate tax rate is 30%. The assets will depreciate using t..

When a projects net present value exceeds zero : When a project’s net present value exceeds zero, then:

Person requires greater return when risk increases : If a person requires greater return when risk increases, that person is said to be:

Considered to be the most risky : Which of the following is considered to be the most risky?

A decrease in the debt ratio will normally have no effect : A decrease in the debt ratio will normally have no effect on:

Health care reimbursement : The first part of the course project is an analysis of current health care reimbursement policies and their effect on financial management decisions. Your paper should be mainly an evaluation of health care reimbursement and payment methods for a spe..

Using the option pricing theory-find the market value : Albany Corp has zero coupon bonds maturing after 15 years. The overall value of the firm is 3 times the face value of the bonds. The company has sigma of .25 and the riskless rate is 8%. Using the option pricing theory, find the market value of a $10..

User Account

All Pages