Consider two investments:

A. Investment 1 has a 50% chance of producing a return of zero and a 50% chance of producing a return of 40% B. Investment 2 has a 50% chance of producing a return of 10% and a 50% chance of producing a return of 30%

Which of the following statements regarding the investments is TRUE? (A)

(A) Investment 1 is riskier than Investment 2
(B) Investment 2 is riskier than Investment 3
(C) Investment 1 and Investment 2 have the same amount of risk
(D) Investment 1 is a better investment because it has the potential to produce the highest returns

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.