44.

Adverse selection represents O a ) Profitable transaction O b ) Unconsummated transaction O c) Wealth Wealth creating transaction O d) All of the aboveA random variable is O a) A va a) A variable that takes on known values O b) A variable that takes on null values only O c) A variable that is always zero O d) A variable that takes of values that are uncertainAt a fair carnival roulette wheel, a player can either win $10, $30, or $80. If it costs $40 to play, would an individual gain or lose from playing the game O a) Gain Ob) Lose O c) Breakeven-neither gain nor lose O d) None of the aboveYou can invest $100,000 into either project A or B. You estimate that A would succeed with a probability of 0.6 in which case it doubles in value. If it fails, its scrap value is $50,000. Project B would succeed with probability 0.7, in which case it would have a value of $150,000. If it fails, project B's scrap value is $30,000. Which project should you invest in a) Project A O b) Project B O C) Neither of the projects O d) You cannot tell from the information presented