Suppose Joe and Leo both face the following individual loss distribution:Probability of Loss                                Amount of Loss            0.7                                                        $0            0.3                                                        $40Determine the expected loss faced by Joe and Leo on an individual basis.

Which best describes the option value of a project?

Moral hazard leads to:

“The truth of the matter is that Europe’s requirements for the next 3 or 4 years of foreign food and other essential products– principally from America– are so much greater than her present ability to pay that she must have substantial additional help, or face economic, social, and political deterioration of a very grave character. The remedy lies in breaking the vicious circle and restoring the confidence of the European people in the economic future of their own countries and of Europe as a whole. … Aside from the demoralizing effect on the world at large and the possibilities of disturbances arising as a result of the desperation of the people concerned, the consequences to the economy of the United States should be apparent to all. It is logical that the United States should do whatever it is able to do to assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace. Our policy is directed not against any country or doctrine but against hunger, poverty, desperation, and chaos. Its purpose should be the revival of working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist.” George C. Marshall, remarks made at Harvard University on June 5, 1947 Which of the following provides the best rationale for the economic focus of the policy being supported in the above speech?

“We know through painful experience that freedom is never voluntarily given by the oppressor; it must be demanded by the oppressed. Frankly, I have yet to engage in a direct-action campaign that was ‘well timed’ in the view of those who have not suffered unduly from the disease of segregation. . . . We must come to see, with one of our distinguished jurists, that ‘justice too long delayed is justice denied.’ We have waited for more than 340 years for our constitutional and God-given rights. The nations of Asia and Africa are moving with jetlike speed toward gaining political independence, but we still creep at horse-and-buggy pace toward gaining a cup of coffee at a lunch counter.” — Martin L. King Jr. African American leader, “Letter from Birmingham Jail”, 1963  “The White man knows that the Black revolution is worldwide. . . . So I cite these various revolutions, brothers and sisters, to show you that you don’t have a peaceful revolution. You don’t have aturn-the-other-cheek revolution. There’s no such thing as a nonviolent revolution. The only kind of revolution that’s nonviolent is the Negro revolution. The only revolution in which the goal is loving your enemy is the Negro revolution. It’s the only revolution in which the goal is a desegregated lunch counter, a desegregated theater, a desegregated park, and a desegregated public toilet…. That’s no revolution. Revolution is based on land…. Land is the basis of freedom, justice, and equality. . . . A revolutionary wants land so he can set up his own nation, an independent nation.” — Malcolm X, African American leader, “Message to the Grass Roots,” 1963 In noting that he had “yet to engage in a direct-action campaign that was ‘well timed,’” Martin Luther King, Jr., was most likely arguing against

“We will stay because a just nation cannot leave to the cruelties of its enemies a people who have staked their lives and independence on America’s solemn pledge — a pledge which has grown through the commitments of three American Presidents.” “We will stay because in Asia and around the world are countries whose independence rests, in large measure, on confidence in America’s word and in America’s protection. To yield to force in Vietnam would weaken that confidence, would undermine the independence of many lands, and would whet the appetite of aggression. We would have to fight in one land, and then we would have to fight in another — or abandon much of Asia to the domination of Communists.” — President Johnson, State of the Union Message, January 12, 1966 In what way did Johnson most significantly depart from the policies of prior presidents?

“We believe that the Negro should adopt every means to protect himself against barbarous practices inflicted upon him because of color.” “We believe in the freedom of Africa for the Negro people of the world, and by the principle of Europe for the Europeans and Asia for the Asiatics, we also demand Africa for the Africans at home and abroad.” “We strongly condemn the cupidity of those nations of the world who, by open aggression or secret schemes, have seized the territories and inexhaustible natural wealth of Africa, and we place on record our most solemn determination to reclaim the treasures and possession of the vast continent of our forefathers.” –Marcus Garvey, Declaration of Rights of the Negro Peoples of the World,  Adopted at the first convention of the Universal Negro Improvement Association (UNIA), August 1920 Which of the following later movements held ideas closest to those expressed by Garvey in the excerpt?

In the parable, who does the father represent?

The text says the following: “In order to attract him the householder practises an able device.” What is this “able device”?

“We are people of this generation, bred in at least modest comfort, housed now in universities, looking uncomfortably to the world we inherit. When we were kids the United States was the wealthiest and strongest country in the world; the only one with the atom bomb, the least scarred by modern war, an initiator of the United Nations… As we grew, however, our comfort was penetrated by events too troubling to dismiss… The conventional moral terms of the age, the politician moralities–“free world,” “people’s democracies”–reflect realities poorly, if at all, and seem to function more as ruling myths than as descriptive principles… The bridge to political power, though, will be build through genuine cooperation, locally, nationally, and internationally, between a new left of young people and an awakening community of allies”  — Students for a Democratic Society (SDS), Port Huron Statement, 1962 Which of the following post-1945 developments contributed most strongly to the discomfort that members of SDS felt?