An investment had a nominal return of 10.0 percent last year. If the real return on the investment was only 7.6 percent, what was the inflation rate for the year?

Rats that received electric shocks were unlikely to develop ulcers if the

You would like to compare your firm's cost structure to that of your competitors. however, your competitors are much larger in size than your firm. which one of these would best enable you to compare costs across your industry? common-size income statement. pro forma balance sheet. statement of cash flows. common-size balance sheet

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?