Assume the Probability of a Pessimistic, Most Likely and Optimistic

question 81

Multiple Choice

Assume the probability of a pessimistic, most likely and optimistic state of nature is .25, .55 and .20, and the returns associated with those states of nature are 5%, 10%, and 13% for asset Y. Based on this information, the expected return, standard deviation, and coefficient of variation for asset Y are:

• A) 10.50%, 2.96% and 0.395 respectively
• B) 10.35%, 2.86% and 0.345 respectively
• C) 9.35%, 7.63% and 0.816 respectively
• D) 9.35%, 2.76% and 0.295 respectively

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Definitions:

Foreign Corrupt Practices Act

U.S. legislation aimed at preventing companies and their representatives from bribing foreign officials to gain a business advantage.

Bribery of Foreign Officials

The act of offering or giving anything of value to foreign government officials with the intent to influence their decisions in favor of the briber.

Slamming

An illegal telecommunications practice where a customer's telephone service is switched to another provider without their consent.

Consumers

Individuals or groups that purchase goods or services for personal use.