Use the Information for the Question(s)below

question 89

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 Wesfarmers, National Australia Bank and BHP Billiton?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Sister Chromatids

Identical copies of a chromosome, connected by a centromere, that are produced during DNA replication and are present until they are separated during cell division.

Duplicated Chromosomes

Duplicated chromosomes refer to chromosomes that have been replicated and consist of two identical sister chromatids joined at a centromere.

Anaphase II

A phase of meiosis II where sister chromatids are pulled apart towards opposite poles of the cell.

Sister Chromatids

Identical copies of a chromosome that are connected by a centromere.