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NEW QUESTION: 1
If an investor's certainty equivalent is greater than the expected value of an investment alternative, the
investor is said to be:
A. Risk seeking.
B. Risk averse.
C. Cautious.
D. Risk indifferent.
Answer: A
Explanation:
Choice "c" is correct. If an investor's certainty equivalent, the point at which they are indifferent to risk,
exceeds the expected return on an investment, then the investor is actually seeking lower return for
higher risk. This behavior represents risk seeking behavior.
Choice "a" is incorrect. Risk indifferent behavior occurs when an investor's certainty equivalent is equal to
the expected return on the investment.
Choice "b" is incorrect. Risk averse behavior occurs when an investor's certainty equivalent is less than
the expected rate of return. The investor seeks higher returns for more risk.
Choice "d" is incorrect. Cautious is not a technical term used in risk behavior classifications.
NEW QUESTION: 2
According to the IIA Code of Ethics, the deliberate omission of relevant information from an audit report would violate which principle?
A. Responsibility.
B. Competency.
C. Honesty.
D. Integrity.
Answer: D
NEW QUESTION: 3
What is the purpose of the service shown in the image below?
A. To access a case in IBM CaseManager.
B. To call a Web Service that creates a new folder on a shared network drive.
C. To write a text file to a folder on the IBM Business Process Manager server.
D. To retrieve a document from an Enterprise Content Management (ECM) system.
Answer: A