A Quiz Consists of 920 True or False Questions

question 27

Multiple Choice

A quiz consists of 920 true or false questions. If the student guesses on each question, what is the mean numberof correct answers?

• A) 460
• B) 0
• C) 920
• D) 184

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Definitions:

Financial Markets

Financial markets are platforms where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices reflective of supply and demand.

NPV Projects

Projects that are evaluated based on the Net Present Value method, helping in deciding whether they contribute positively to the company's value.

Soft Rationing

Refers to the internal limitations set by a company on the funds allocated for capital projects, despite having a strong financial position.

Hard Rationing

A situation in corporate finance where there is a strict limit on the amount of new equity a company can issue.