Shane holds wealth worth $10,000 . He considers investing it equally in two gambles one of which has a probability of 0.6 to yield a return of 10% and the other has a probability of 0.4 to yield a return of 20%. What will be Shane's total expected return from the two gambles?
a. $1,000
b. $700
c. $500
d. $900
e. $1,100
b
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________ money refers to something that is used as money but that is otherwise worthless and typically has the backing of the government or a central bank
A) Fiat B) Federal C) Commodity D) Representative
The trade balance is
A) by definition, identical to the current account balance. B) is a major portion, but not the only component, of the current account balance. C) almost invariably larger than the financial account balance. D) the largest component of the financial account.
In the long run, a monopolistically competitive firm's demand curve must be tangent to its average cost curve
a. True b. False Indicate whether the statement is true or false
The money rate of interest will be less than the real rate of interest when decision makers anticipate
a. stable prices in the future. b. falling prices in the future. c. inflation in the future. d. that the money rate of interest will decline.