Corporations have the disadvantage of (i) double taxation; (ii) unlimited liability

Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker

Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________. A) keep her current job; income B) keep her current job; utility C) quit her job and become a realtor; utility D) quit her job and become a realtor; income

The amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset is known as the

A) CDS spread. B) risk premium. C) VIX. D) term spread.