1. Suppose your company's method of making decisions under risk is "making the best out of the worst possible outcome." What rule would you be forced to follow?
2. "A portfolio manager needs to pick winners-assets or securities with high expected returns and low risk." What is wrong with this statement?
3. Do you favor anti-gouging laws as a means of protecting consumers from high prices following natural disasters, such as Hurricane Katrina in New Orleans? If so, why? If not, why not?
4. How does a price ceiling undermine the rationing function of market-determined prices? How could rationing coupons insure that consumers with the highest values get the limited amount of a good supplied when government prices ceilings create shortages?