The real risk-free rate is affected by two factors: A. The expected rate of inflation and the set of investment opportunities available in the economy. B. Time preference for income consumption and the set of investment opportunities available in the economy. C. The relative ease or tightness in capital markets and the set of investment opportunities available in the economy. D. Time preference for income consumption and the relative ease or tightness in capital markets.

Gerda, a real estate agent, is selling a moderately priced house in a subdivision. she knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. a buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through. what does this scenario best illustrate?

Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?

George retired from a local law firm and then volunteered to oversee a nonprofit's legal records. george is performing the duties of a: