Multiple Choice
A farmer with $1000 worth of crops in the field faces a .10 probability that a hail storm will destroy the value of her crop before she can harvest it.If she is risk averse,the most she would be willing to pay to insure against this loss is
A) $0.
B) $10.
C) $100.
D) $900.
Correct Answer:
Verified
Correct Answer:
Verified
Q65: When will an individual's budget line coincide
Q66: Firms are more likely to exhibit risk-neutral
Q67: If people have rational expectations,then they<br>A) are
Q68: Hillary and Bill are playing backgammon.Hillary offers
Q69: A fair coin is flipped.If it lands
Q71: The market line must<br>A) pass through the
Q72: Consider a portfolio with three stocks,each with
Q73: The northwest boundary of the set of
Q74: Buyers of risky assets are commonly known
Q75: In the market for insurance,the adverse selection