Marta is considering the purchase of a condominium. Which of the following would be a gamble that is a fair bet?
A) The condo has a 10% probability of rising in value by 20% and a 10% probability of falling in value by 30%.
B) The condo has a 10% probability of rising in value by 30% and a 30% probability of falling value by 5%.
C) The condo has a 10% probability of rising in value by 15% and a 15% probability of falling in value by 10%.
D) The condo has a 10% probability of rising in value by 30% and a 15% probability of falling value by 30%.
Correct Answer:
Verified
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A)there are several certain
Q2: The two essential elements of risk are
Q3: A fair bet is a:
A)wager entered into
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Q7: A risk-averse person is someone who:
A)changes direction
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Q10: Mathematically, a fair bet has an expected
Q11: If an investment has a 40% probability
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