Erik is an investor with $5,000 available for investment. he has the following three investment possibilities from which to choose: option | scenarios1. | keep the $5,000 in cash for one year.2. | invest in a friend’s business with a 50% chance of getting $10,000 after one year and a 50% chance of getting nothing.3. | invest in a relative’s business with a 30% chance of getting $15,000 after one year, 20% chance of getting $2,500 after one year, 50% chance of getting nothing. suppose erik cares about the risk involved in options 2 and 3, and decides to select option 1 because it has no risk. which of the following statements would be true about erik? a. he is risk-averse. b. he is risk-neutral. c. he is risk-loving. d. none of these descriptions is accurate. later, while examining the same investment alternatives, erik’s brother, devin, clearly expressed a preference for option which of the following statements is true about devin? a. he is risk-averse. b. he is risk-neutral. c. he is risk-loving. d. none of the above.

Roi analysis using dupont model. charlie? s furniture store has been in business for several years. the firm? s owners have described the store as a ? high-price, highservice? operation that provides lots of assistance to its customers. margin has averaged a relatively high 32% per year for several years, but turnover has been a relatively low 0.4 based on average total assets of $800,000. a discount furniture store is about to open in the area served by charlie? s, and management is considering lowering prices in order to compete effectively. required: a. calculate current sales and roi for charlie? s furniture store. b. assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same roi as they currently earned. c. suppose that you presented the results of your analysis in parts a and b of this problem to charlie, and he replied, ? what

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

According to this excerpt, a key part of our national security strategy is