Use the Following to Answer Questions

question 21

Multiple Choice

Use the following to answer questions:
Scenario: Buying Shares
Geordie 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 a 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 a year. The corresponding numbers for investment in Microsoft are identical.
-(Scenario: Buying Shares) Look at the scenario Buying Shares. The probability that Geordie will make a gain is _____ if he invests $1,000 in either Apple or Microsoft. The probability that he will make a gain is _____ if he invests $500 apiece in Apple and in Microsoft.

• A) 60%; 60%
• B) 60%; 84%
• C) 76%; 24%
• D) 60%; 36%

---

Definitions:

Bailor

The person who temporarily transfers possession of property to another (the bailee) under a bailment agreement.

Common Carrier

A business or service that is available to the public for transportation of people, goods, or messages, under certain regulatory and legal obligations.

Remuneration

Payment or compensation received for services or employment, including allowances, benefits, and bonuses.

Transportation of Property

The process of moving goods or possessions from one location to another, often involving logistical planning and legal considerations.