The certainty equivalent rate of a portfolio is Group of answer choices the minimum rate guaranteed by institutions such as banks. the rate that a risk-free investment would need to offer with certainty to be considered equally attractive as the risky portfolio. the rate that equates "A" in the utility function with the average risk aversion coefficient for all risk-averse investors. the rate that the investor must earn for certain to give up the use of his money. represented by the scaling factor "-.005" in the utility function.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)