If an Investment Offered an Expected Payoff of $100 with $0

question 76

Multiple Choice

If an investment offered an expected payoff of $100 with $0 variance, you would know that:

• A) half of the time the payoff is $100 and the other half it is $0.
• B) the payoff is always $100.
• C) half of the time the payoff is $200 and the other half it is $0.
• D) half of the time the payoff is $200 and the other half it is $50.

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Definitions:

Postconventional

A stage in moral development where individuals make decisions based on internal principles, and societal rules are seen as flexible.

Unnecessary Human Suffering

Human distress or hardship that could be avoided or mitigated through alternative actions or policies.

Extra Morphine

The administration of morphine in addition to the standard or initially planned dosage, often for pain management.

Conventional

Following traditional forms and genres, relying on established norms and practices.