(Scenario: Diversification)Use Scenario: Diversification

question 128

Multiple Choice

(Scenario: Diversification) Use Scenario: Diversification.If Morris invests all of his money in the sunglass company,what is his expected gain or loss? Scenario: Diversification
Morris is considering investing $10,000 in a sunglass company or a rain poncho company.If it is a rainy year and he invests only in the sunglass company,he will lose $5,000.However,if it is a rainy year and he invests only in the rain poncho company,he will earn $10,000.If it is a sunny year and he invests only in the sunglass company,he will earn $10,000;if he invests only in the rain poncho company,he will lose $5,000 in a sunny year.There is a 50% chance of a sunny year and a 50% chance of a rainy year.

• A)a loss of $2,500
• B)to break even
• C)a gain of $2,500
• D)a gain of $10,000

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Definitions:

Informed Consent

The process through which individuals are provided with essential information about a medical procedure or treatment, its risks, benefits, and alternatives, to make a voluntary and educated decision about whether to proceed.

Right to Refuse Treatment

The legal right of patients, deemed competent to make such decisions, to refuse medical treatment, including psychiatric medication.

Manic or Psychotic

Referring to a state of high energy, often with grandiose plans and behaviors, that may disconnect individuals from reality, sometimes seen in bipolar disorder.

Impaired Competence

A reduced ability or effectiveness in fulfilling or carrying out tasks or duties to a satisfactory standard.