Expected Monetary Value (EMV)is

question 100

Multiple Choice

Expected monetary value (EMV) is

• A)the average or expected monetary outcome of a decision if it can be repeated a large number of times.
• B)the average or expected value of the decision,if you know what would happen ahead of time.
• C)the average or expected value of information if it were completely accurate.
• D)the amount you would lose by not picking the best alternative.
• E)a decision criterion that places an equal weight on all states of nature.

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Definitions:

Market Efficiency

describes a market in which asset prices fully reflect all available information at any given time, making it impossible to consistently achieve higher returns.

Unexpected Return

The difference between the actual return of an investment and the expected return, usually arising from unexpected factors or events.

Expected Return

The anticipated return on an investment, accounting for the probabilities of different outcomes, including gains and losses.

Total Return

The overall financial benefit (or loss) of an investment over a specified period, including both capital gains and dividends.