Consider the Following Two Investment Alternatives

question 44

Multiple Choice

Consider the following two investment alternatives. First, a risky portfolio that pays 20% rate of return with a probability of 60% or 5% with a probability of 40%. Second, a Treasury bond that pays 6%. If you invest $50 000 in the risky portfolio, your expected profit would be ________.

• A)$3 000
• B)$7 000
• C)$7 500
• D)$10 000

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Definitions:

Sex Flush

A darkening of the skin or a rash that temporarily appears as a result of blood rushing to the skin’s surface during sexual excitation.

Prostaglandin Surge

A significant increase in the levels of prostaglandins, which are lipid compounds with various physiological effects, including inducing labor or periods.

Genital Vasocongestion

The swelling of bodily tissues caused by increased vascular blood flow, often associated with sexual arousal.

Sexual Excitement

A state of heightened arousal and anticipation in anticipation of or during sexual activity.