Assume a portfolio has the possibility of returning 7%, 8%, 10%, or 12%, with a likelihood of 20%, 30%, 25%, and 25%, respectively. Considering the portfolio's standard deviation and expected value, would you say that this portfolio is of:
A. average yield, low-risk.
B. lower-than-average yield, low-risk.
C. average yield, average risk.
D. Not enough information to tell
D. Not enough information to tell
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On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?
a. Low end of the range. b. High end of the range. c. Midpoint of the range. d. IFRS presents no specific guidance as to this point.
Why is the payback method often more useful than the net present value method for evaluating systems projects?
The ________ describes a company's revenues and expenses along with the resulting net income or net loss over a period of time due to earnings activities.
Fill in the blank(s) with the appropriate word(s).
A sales return of $25 including tax of $2 would require a:
a. debit to sales returns and allowances for $25. b. credit to sales returns and allowances for $23. c. credit to sales returns and allowances for $25. d. debit to sales returns and allowances for $23.