A Project Has a 60% Chance of Doubling Your Investment

question 3

Multiple Choice

A project has a 60% chance of doubling your investment in 1 year and a 40% chance of losing half your money. What is the standard deviation of this investment?

• A) 25%
• B) 50%
• C) 62%
• D) 73%

---

Definitions:

Paul Ekman

A psychologist who is best known for his work on the facial expressions of emotion and their relation to our feelings.

Perception of Risk

An individual's assessment and understanding of the potential dangers or threats associated with a particular action or situation.

Emotion Influence

The impact emotions have on cognitive processes and behaviors, including decision-making, creativity, and interpersonal relationships.

Need for Achievement

The motivation to reach a significantly challenging goal, overcome obstacles, and exert a high standard of success in one's endeavors.