Hermione is considering an investment that has a ¾ chance of paying a 10 percent rate of return and a ¼ chance of paying 2 percent. What is the average expected rate of return on the investment?
A. 2 percent.
B. 6 percent.
C. 8 percent.
D. 10 percent.
C. 8 percent.
You might also like to view...
The amount of unemployment caused by efficiency wages:
A. has been measured by economists to be minimal. B. has been found to be quite large in markets that have mostly minimum-wage workers. C. is larger in sectors that have more less-skilled workers in them. D. has little conclusive evidence in economic research.
Laws that are passed that either require or forbid certain behaviors are examples of command-and-control policies
a. True b. False Indicate whether the statement is true or false
Unemployment insurance tends to
a. decrease structural unemployment. b. decrease cyclical unemployment. c. increase frictional unemployment. d. increase the number of discouraged workers.
If a linear supply curve has a zero intercept, the elasticity of supply is always unitary
Indicate whether the statement is true or false