If a payout is certain to occur, then the variance of that payout equals
A) zero.
B) one.
C) the expected value.
D) the expected value squared.
A
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The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear (a straight line)
a. True b. False Indicate whether the statement is true or false
Suppose the nominal interest rate is 5 percent, the tax rate on interest income is 30 percent, and the after-tax real interest rate is 2.1percent. Then the inflation rate is 2 percent
a. True b. False Indicate whether the statement is true or false
When a nation joins the IMF, it deposits funds into an account. These funds have a value based on a weighted average of
A. the Russian ruble, the British pound sterling, the Japanese yen, and the U.S. dollar. B. the euro, the British pound sterling, the Japanese yen, and the U.S. dollar. C. the euro, the British pound sterling, and the Chinese yuan. D. the Russian ruble, the British pound sterling, the Chinese yuan, and the U.S. dollar.
Assume that a monopoly is producing at a profit-maximizing output level. If the firm's total fixed costs decrease, the firm
A. should continue to produce at the same level. B. should increase its price. C. should lower its price. D. increase its output level.