Use the following to answer questions :
Scenario: Buying Shares
Geordie is considering buying shares in two companies,Apple and Microsoft.If he invests $1 000 in Apple,there is a 40% probability that his investment will be worth only $800 and a 60% probability that it will be worth $1 200 at the end of a year.If he invests $500 in Apple,there is a 40% probability that his investment will be worth $400 and a 60% probability that it will be worth $600 at the end of a year.The corresponding numbers for investment in Microsoft are identical.
-(Scenario: Buying Shares)Use Scenario: Buying Shares.The probability that Geordie will sustain a loss is _____% if he invests $1 000 in either Apple or Microsoft and _____% if he invests $500 apiece in Apple and in Microsoft.
A) 40;40
B) 40;16
C) 80;20
D) 40;80

Question

Quizplus · Accepted Answer

The Answer of Use the following to answer questions :
Scenario: Buying Shares
Geordie is considering buying shares in two companies,Apple and Microsoft.If he invests $1 000 in Apple,there is a 40% probability that his investment will be worth only $800 and a 60% probability that it will be worth $1 200 at the end of a year.If he invests $500 in Apple,there is a 40% probability that his investment will be worth $400 and a 60% probability that it will be worth $600 at the end of a year.The corresponding numbers for investment in Microsoft are identical.
-(Scenario: Buying Shares)Use Scenario: Buying Shares.The probability that Geordie will sustain a loss is _____% if he invests $1 000 in either Apple or Microsoft and _____% if he invests $500 apiece in Apple and in Microsoft.
A) 40;40
B) 40;16
C) 80;20
D) 40;80

Use the Following to Answer Questions