Aaron owned a farm. Aaron gave First Bank and Trust (FBT) a mortgage on the farm. Aaron transferred ownership of the farm to Bob and gave Bob a general warranty deed. The general warranty deed to Bob warranted that there were no encumbrances on the farm and did not mention the mortgage to FBT. Bob owned the farm only a short time and then sold the farm by limited warranty deed to Carol. Carol decided that farm life was not for her, and sold the farm by general warranty deed to David. The general warranty deed did not mention the mortgage to FBT. One week after David purchased the farm, First Bank and Trust notifies David of the mortgage. Required:
Is there a breach of any deed warranty or covenant and, if so, which covenant? At this stage, can David sue Carol?

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?