When people retire, they can live off their retirement savings, Social Security, capital gains, dividends, and other sources of income. Which statement best describes the concept of dividend payments?
es )
A)
They are gains made when a stockholder sells an investment for a higher
price than what was paid for it.
B)
They are payments made to a retiree from an account that grew over the
course of his or her employment.
They are assets paid annually or quarterly out of a corporation's profits to
stockholders of that company.
D
They are monthly interest payments made to retirees based on the amount
of money they have in a 401K plan.

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?