Question: URGENT, PLEASE ANSWER ASAP!! 1. What does it mean when we say the owners of a firm are entitled to the residual income of a

URGENT, PLEASE ANSWER ASAP!!

1.What does it mean when we say the owners of a firm are entitled to the residual income of a firm? Is this a good thing or a bad thing? Explain in 5-7 sentences.

2.Define risk aversion. Are there different degrees of risk aversion among different investors? Explain (5-7 sentences). Is there any evidence we can observe in financial markets that would support the notion that these markets are dominated by risk averse individuals? Explain(5-7 sentences)

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