Scenario: Buying Shares Jordi Is Considering Buying Shares in Two

question 193

Multiple Choice

Scenario: Buying Shares Jordi is considering buying shares in two companies, Apple and Microsoft.If he invests
$1,000 in Apple, there is a 40% probability that his investment will be worth only $800 and a 60% probability that it will be worth $1,200 at the end of one year.If he invests $500 in Apple, there is a 40% probability that his investment will be worth $400 and a 60% probability that it will be worth $600 at the end of the year.The corresponding numbers for investment in Microsoft are identical.
(Scenario: Buying Shares) Based on the information provided in the scenario Buying Shares, the probability that Jordi will sustain a loss is if he invests $1,000 in either Apple or Microsoft and is
________ if he invests $500 apiece in Apple and in Microsoft.

• A)40%; 40%
• B)40%; 16%
• C)80%; 20%
• D)40%; 80%

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Definitions:

European Immigrants

Individuals from countries in Europe who move to another country, often in search of better living conditions, opportunities, or to escape conflict.

Voting

The act of making a choice or decision in an election or other formal decision-making process, typically through casting a ballot.

Suffrage

The right to vote in political elections.

Race

A social construct used to categorize humans into large and distinct groups by cultural, historical, physical, and social characteristics.