Suppose an Asset Is Worth $100,000 Now and in One

question 27

Multiple Choice

Suppose an asset is worth $100,000 now and in one year it will either be worth $115,000 or $95,000 with equal chance) . The expected return and risk as defined in Chapter 9) are:

• A) 15% return, 20% risk
• B) 15% return, 17.4% risk
• C) 0% return, 5% risk
• D) 0% return, 10% risk
• E) 5% return, 10% risk

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