Suppose Emily and Ben have the option to play the following game: Win dollar 500 with a probability of 20percentage and lose dollar 125 with a probability of 80 percentage. If Emily agrees to play and Ben refuses, what can we conclude? Emily is risk-neutral and Ben is risk-averse Emily is risk-loving and Ben is risk-neutral Emily is risk-loving and Ben is risk-averse Emily is risk-averse and Ben is risk-neutral Which of the following is (are) an example(s) of risk-pooling? Including stocks from companies that do well during recession and companies that do well during boom in a financial portfolio Putting money into a safe at home and depositing some savings in different commercial banks Working as a full-time accountant for a firm while teaching courses at night as a part-time instructor All of the answers are correct Mark is considering the following gamble: A 75 percentage chance of winning dollar 1,000 and a 25 percentage chance of losing dollar 3.000. How can we classify this gamble? Better-than-fair gamble Worse-than-fair gamble Fair gamble Almost-fair gamble Jason is risk-averse while Alex is risk-neutral. They are both considering whether they should play this game: Win S200 with the probability of 80 percentage or lose dollar 1,000 with a probability of 20%. What can we predict? Both Jason and Alex will play the game 0 Only Jason will play the game 0 Only Alex will play the game Neither Jason nor Alex will play the game Which of the following describe(s) the difference(s) between stockholders and bondholders of a corporation? Bondholders are owners while stockholders are creditors of the firm Bondholders assume less risk than stockholders should the firm value fall Bondholders have unlimited liability while stockholders have limited liability on the firm's debt All of the answers are correct Which of the following is most likely an example of sole proprietor