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Author a Accepts a $5,000 Advance and a 10% Royalty

Question 19

Multiple Choice

Author A accepts a $5,000 advance and a 10% royalty after 5,000 books are sold.Author B foregoes the advance and negotiates for a 15% royalty on all books sold.Author C decides to self publish his book and keep 50% of all sales revenue.In what order of risk aversion (from most to least) would you rank these authors?


A) Author A, Author B, Author C
B) Author A, Author C, Author B
C) Author B, Author A, Author C
D) Author C, Author B, Author A

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