A compound prospect can be defined as one which:
A)consists of risky outcomes discounted by a factor reflecting risk.
B)has as one of its outcomes a riskless prospect.
C)has as one of its outcomes another risky prospect.
D)as one characterized by complexity.

Question

Quizplus · Accepted Answer

A compound prospect is defined as one which has as one of its outcomes another risky prospect, indicating a layered or nested structure of risk.

A Compound Prospect Can Be Defined as One Which