(Scenario: Buying Shares)Use Scenario: Buying Shares

question 117

Multiple Choice

(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. 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.

• A)40;40
• B)40;16
• C)80;20
• D)40;80

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Definitions:

Warmth

A personality trait that reflects friendliness, empathy, and kindness towards others.

Cheerfulness

A state of being noticeably happy and optimistic.

Preconscious Mind

Part of the mind that contains information that is outside of one's current attention but can be brought into consciousness readily.

Awareness

The state of being conscious of something, including oneself, one's surroundings, or one's actions.