A Risk-Free Investment of $10,000 Will Return 8

question 14

Multiple Choice

A risk-free investment of $10,000 will return 8%. A risky $10,000 investment has a 50% chance of defaulting and returning only $3,000. What is the expected rate of return on the risky
Investment?

• A)+5.40%
• B)-0.54%
• C)-31.00%
• D)-46.00%

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Definitions:

Mammalian Red Blood Cells

Mammalian red blood cells are biconcave, disk-shaped cells that carry oxygen from the lungs to the body's tissues and remove carbon dioxide, lacking a nucleus when mature.

Phagocytic

Pertaining to cells that have the ability to engulf and absorb particles or other cells through a process called phagocytosis, key for immune defense.

Lobed Nucleus

A characteristic of certain white blood cells, where the nucleus is divided into several connected lobes, often seen in neutrophils.

Erythropoietin

A hormone produced by the kidneys that stimulates red blood cell production in response to low oxygen levels in the body's tissues.