Suppose It Is Certain That an Earthquake Will Occur Some-Day

question 49

Multiple Choice

Suppose it is certain that an earthquake will occur some-day. What is the probability (to the nearest percent) that it will occur while you are at work? Assume you are at work 5 hours per day, 260 days per year. ​

• A) 32%
• B) 21%
• C) 85%
• D) 11%
• E) 15%

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Definitions:

Canadian Small Stocks

Canadian small stocks refer to shares of small-cap companies based in Canada, representing firms with smaller market capitalization in the Canadian stock market.

Risk Premium

The additional return required by investors for taking on a higher risk compared to a risk-free investment.

Risky Asset

An asset that carries a significant possibility of losing some or all of its investment value.

Risk-free Asset

An investment that is expected to deliver guaranteed returns, with minimal to no risk of financial loss.