The Distributions of Rates of Return for Companies AA and BB

question 144

True/False

The distributions of rates of return for Companies AA and BB are given below:
? $$\begin{array} { l l r r } \text { State of the } & \text { Probability of } & & \\\text { Economy } & \text { This State Occurring } & \underline { \text { AA } } & \underline { \text { B B } } \\\text { Boom } & 0.2 & 30 \% & - 10 \% \\\text { Normal } & 0.6 & 10 \% & 5 \% \\\text { Recession } & 0.2 & - 5 \% & 50 \%\end{array}$$
?
We can conclude from the above information that any rational,risk-averse investor would be better off adding Security AA to a well-diversified portfolio over Security BB.

---

Definitions:

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together diverse parts of an organization.

Influence Scores

Quantitative measures that assess the impact or persuasiveness an individual or brand has on their followers within social media networks.

Culture

Common practices, work life ethics and practices, professional experiences, and beliefs of a group of individuals.

Social Media Coordinator

A professional who focuses on the strategic planning and execution of the social media content for a brand or organization.