If an Investment Is Equally Likely to Return 10 Percent

question 348

Multiple Choice

If an investment is equally likely to return 10 percent per year or 15 percent a year, then its average expected rate of return is

• A) 10.5 percent.
• B) 11.0 percent.
• C) 11.5 percent.
• D) 12.5 percent.

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Definitions:

Softens Rejection

Techniques or methods used to mitigate the negative impact or harshness of rejecting someone or something.

Facilitates Apology

The process or action that makes it easier for individuals to express regret or remorse for wrongdoing, often contributing to reconciliation and conflict resolution.

Information Richness

The potential information-carrying capacity of a communication medium.

Paraverbal Cues

Non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, pitch, and pacing.