An Investor Is Considering a Short-Term Investment in a Resort

question 47

Multiple Choice

An investor is considering a short-term investment in a resort property on a Caribbean island. If the weather is reasonably stable over the next year, the value of the investment is expected to be $1.2 million; however, if this proves to be a heavy hurricane year, the value is expected to be $0.5 million. According to the experts, there is a 40% chance that this will be a year of many hurricanes.
-Refer to the information above. If this investment is purchased for its fair market value, what is the expected return if there is a heavy hurricane season? Round your answer to the nearest
Tenth of a percent.

• A)-62.5%
• B)-45.7%
• C)-37.5%
• D)-54.3%

Recognize the role of sociability and dominance in defining communication styles.

Discuss the stability and learnability of communication styles over a person’s lifetime.

Explore the concept of versatility in communication and its importance in interpersonal relations.

Examine communication-style bias and strategies for overcoming it.

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Definitions:

Bond

A fixed-income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest and the return of the principal at maturity.

Treasury Bill

Short-term, highly liquid government debt obligation issued at a discount from the face value and returning the face amount at maturity.

Par Value

The nominal value of a security stated by the issuer.

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.