An investment pays $1,500 half of the time and $500 half of the time. Its expected value and variance respectively are:
A) $1,000; 500,000 dollars
B) $2,000; (250,000 dollars) ²
C) $1,000; 250,000 dollars
D) $1,000; 250,000 dollars²
Correct Answer:
Verified
Q1: If the probability of an outcome equals
Q2: Which of the following is true?
A) Investments
Q3: All other factors held constant, an investment:
A)
Q4: An investor puts $1,000 into an investment
Q5: An investor puts $2,000 into an investment
Q7: An investment pays $1,200 a quarter of
Q8: Inflation presents risk because:
A) inflation is always
Q9: When measuring the risk of an asset:
A)
Q10: If an investment will return $1,500 half
Q11: Risk-free investments have rates of return:
A) equal
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