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Estimated Profits for an Investor Would Depend on How Successful

question 112

Multiple Choice

Estimated profits for an investor would depend on how successful a bailout bill would be in helping the U.S.economy.The estimated annual return for two different investment strategies are shown in the following table.If there is a 30% chance that the economy will decline, 50% that there will be no change and 20% chance that it will rebound, the expected value with perfect information is ________________________ .
Estimated profits for an investor would depend on how successful a bailout bill would be in helping the U.S.economy.The estimated annual return for two different investment strategies are shown in the following table.If there is a 30% chance that the economy will decline, 50% that there will be no change and 20% chance that it will rebound, the expected value with perfect information is ________________________ .   A) -$250 B) -$450 C) $590 D) $700 E) $1290

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Definitions:

Multiple-choice Question

A question format that offers several answers from which the respondent must choose the correct one.

Likert-type Question

A survey question format that uses a 5 or 7-point scale for respondents to express agreement or disagreement with a statement.

Semantic Differential Question

A type of survey question that features a scale and is used to gather information on the connotative meaning of objects, events, or concepts.

Longitudinal Studies

Studies that track people’s changes in knowledge, attitude, or behavior over time.

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