(Scenario: Diversification)Use Scenario: Diversification

question 119

Multiple Choice

(Scenario: Diversification) Use Scenario: Diversification.If Morris invests half of his money in the sunglass company and half in the rain poncho company,he will earn _____ in a sunny year and _____ in a rainy year. 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)$2,500;$0
• B)$1,250;$1,250
• C)-$2,500;$2,500
• D)$2,500;$2,500

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Definitions:

Coercive Relationship

A relationship dynamic where one party exerts control over the other through threats, intimidation, or manipulation.

Dependent Relationship

A type of interpersonal connection characterized by one party relying heavily on another for emotional, financial, or physical support.

Constructive Relationship

A type of relationship characterized by positive, supportive interactions that contribute to the personal growth and well-being of the individuals involved.

Constructively

In a way that is helpful, positive, or beneficial, often contributing to the improvement or development of something.