Investment A pays $1,200 half of the time and $800 half of the time. Investment B pays $1,400 half of the time and $600 half of the time. Which of the following statements is correct?
A. Investment B has a higher expected value than A, but also greater risk.
B. Investment A has a greater expected value than B, but B has less risk.
C. Investment A and B have the same expected value, but A has greater risk.
D. None of the statements are correct
Answer: D
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In the above figure, what is autonomous consumption?
A) $3.0 trillion B) $1.0 trillion C) $0.0 trillion D) $2.0 trillion
During the 1960s, U.S. steel firms argued they needed tariff protection because Germany and Japan were using new mills to make steel since their old mills were destroyed in World War II. Essentially, this argument is a form of the
A) infant-industry argument. B) anti-dumping argument. C) countering foreign subsidies argument. D) national defense argument.
Which of the following is not a subcategory of consumption spending?
a. consumer services b. consumer investment c. consumer durable goods d. consumer nondurable goods
Labor productivity, measuring the output per worker
a. increases with increases in technology b. decreases with increases in technology c. increases with increases in capital stock d. is the same as the capital labor ratio e. is the same as the capital output ratio