When considering expected returns, what is true about the states of the world?
A) They must have probabilities that sum to 100%.
B) They represent all possible outcomes.
C) They are sometimes simplified into outcomes such as boom, bust, and normal.
D) Statements A through C are all true.
Answer: D
You might also like to view...
The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is a(an)
a. Double-entry system b. Debit c. Credit d. Journalizing
Exploratory research is used in cases when you must define the problem more precisely, identify relevant courses of action, or gain additional insights before an approach can be developed
Indicate whether the statement is true or false
The articles of incorporation may be found in the corporate charter
Indicate whether the statement is true or false
All else being equal, investments with longer payback periods are preferable
Indicate whether the statement is true or false