If a Pregnancy Has a 1/4 Changes of Producing a Child

question 59

Multiple Choice

If a pregnancy has a 1/4 changes of producing a child with a genetic disorder, what are the odds that the next child will also be born with the same disorder?

• A)1/4
• B)1/8
• C)1/12
• D)1/16
• E)1/1

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Definitions:

Required Return

The expected yield that an investor anticipates receiving on an investment, taking into account the risk associated with it.

Profitability Index

A capital budgeting tool that measures the ratio between the present value of future cash flows from an investment and the initial investment cost.

After-tax Cash Flows

The net amount of cash that remains after all tax liabilities have been deducted from a company's revenues.

Required Return

The lowest yearly percentage gain from an investment required to attract individuals or businesses to invest in a specific security or project.