Calculating expected value involves:
A. estimating how likely different outcomes are, and estimating the financial implications of each outcome.
B. predicting the most likely outcome and assuming that that event will occur.
C. assuming the worst outcome will occur and evaluating the financial implication of that outcome.
D. None of these statements is true.
A. estimating how likely different outcomes are, and estimating the financial implications of each outcome.
You might also like to view...
If the total revenue received by sellers of DVDs increases by 20 percent when price increases by 10 percent, then demand for DVDs is
A) perfectly elastic. B) unitary elastic. C) inelastic. D) elastic.
What is marginal cost? How is it measured?
What will be an ideal response?
At a level of real disposable income of 0, consumption is $4000. Then
A) saving equals 0. B) saving equals -$4000. C) savings equal -$4000. D) saving equals $4000.
If the exchange rate measured in euros per dollar increases, then
A) the dollar depreciates relative to the euro. B) the euro appreciates relative to the dollar. C) the euro depreciates relative to the dollar. D) neither currency appreciates or depreciates.