Liz baylor has a $100,000 ring and keeps $100,000 cash in a checking account that pays no interest. if the ring is stolen, liz will be forced to replace it at a cost of $100,000. the chance of this happening is 1/100. she can, however, get insurance that would completely reimburse to her the $100,000 if her ring was stolen. what is the largest premium she would be willing to pay if her u-function is : (i) u = y1/4 (ii) u = y4 (iii) u = y? where y denotes the amount of cash she has. (note that her utility function does not include the value of the ring, since she always has the ring.)

The selling price of houses would be most likely to decrease if there were first a decrease in which of the following? a. new-housing construction. b. mortgage interest rates. c. the unemployment rate. d. construction workers' wages. 2b2t

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

What is a sort of auction for stocks in which traders verbally submit their offers?