An investment's average expected rate of return is the:
A. probability-weighted average of the investment's possible future rates of return.
B. simple average of the investment's possible future rates of return.
C. probability-weighted average of all past rates of return.
D. simple average of the rates of return of all similar investments.
A. probability-weighted average of the investment's possible future rates of return.
You might also like to view...
Marginal benefit curves slope
A) upward because of increasing opportunity cost. B) upward, but not because of increasing opportunity cost. C) downward because of increasing opportunity cost. D) downward, but not because of increasing opportunity cost.
An exogenous increase in domestic investment will
a. increase foreign capital flows into the country. b. increase domestic capital flows to foreign countries. c. reduce domestic interest rates. d. both a and b. e. none of the above.
Refer to the above figure. The figure gives the payoff matrix for two individuals who are being accused of robbing a bank together. What is dominant strategy for Bob?
A) Confess. B) Don't confess. C) Flip a coin to decide what to do. D) There is no dominant strategy.
A total cost curve shows the largest amount of a product a firm can produce with a minimum cost
a. True b. False Indicate whether the statement is true or false