The Minimum Expected Opportunity Loss Is Also Equal to

question 86

Multiple Choice

The minimum expected opportunity loss is also equal to

• A) expected value under certainty minus the expected monetary value of the worst alternative.
• B) expected value of perfect information.
• C) expected profit under certainty.
• D) coefficient of variation.

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Definitions:

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, not yet realized through selling.

Realized Gain

The profit made from the sale of an asset or investment which has been sold for more than its purchase price.

Market Value

The present rate at which a good or service is available for purchase or sale in the open marketplace.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.