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Question 6
Which of the following terms describes a phenomenon whereby individuals ignore their own information about the best course of action and instead simply do what everyone else is doing?
[removed] | A. | Relative performance |
[removed] | B. | Risk sharing |
[removed] | C. | Absolute performance |
[removed] | ||
[removed] | E. | Herding |
What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?
[removed] | ||||||||||||||
[removed] | B. | Risk premium | ||||||||||||
[removed] | C. | Certainty equivalent | ||||||||||||
[removed] | D. | Risk equivalent | ||||||||||||
[removed] | E. | Certainty payment
Question 8 What type of performance measurement based process was used to determine Jack Welch’s successor, Jeffrey Immelt, as CEO of GE?
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