Use the Information for the Question(s)below

question 77

Essay

Use the information for the question(s)below.
Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential 'blockbuster' drug before the Therapeutic Goods Administration (TGA)waiting for approval. If approved, Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure. Little Cure has 10 separate, less important drugs before the TGA waiting for approval. If approved, each of Little Cure's drugs would produce $100 million in net income for Little Cure. The probability of the TGA approving a drug is 50%.
-What is the diversification achieved by an investor if he invests in Commonwealth Bank, ANZ Bank and Westpac?
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Definitions:

Student Loan Interest

Interest that accrues on money borrowed to fund education, which can sometimes be tax-deductible.

Deduction Limit

Maximum amount that can be deducted from taxable income for certain expenses or contributions, as specified by tax laws.

Itemized Deduction

Itemized deductions are specific expenses allowed by the IRS that can be deducted from taxable income to reduce the amount of tax owed.

Moving Expenses

Costs incurred for relocating, which in certain situations, may be deductible for tax purposes.