Rogue Recreation,Inc

question 33

Multiple Choice

Rogue Recreation,Inc.has normally distributed returns with an expected return of 15% and a standard deviation of 5%,while Lake Tours,Inc.has normally distributed returns with an expected return of 15% and a standard deviation of 15%.Which of the following is true?

• A) Lake Tours' investors are not being adequately compensated for relevant risk.
• B) Rogue Rec is likely to experience returns larger than those of Lake Tours.
• C) Lake Tours is more likely to have negative returns than Rogue Rec.
• D) Rational investors will prefer Lake Tours, Inc. over Rogue Recreation, Inc.

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Definitions:

Facial Muscle Activity

Movements of the muscles in the face that are often analyzed to understand emotions and expressions.

Cognitive Thinking

The process of acquiring knowledge and understanding through thought, experience, and the senses.

Vocal Pitch

The perceived frequency of a voice, which can influence perceptions of the speaker's emotional state, physical size, and social dominance.

Deception

The act of misleading or falsely representing information to manipulate the perception or understanding of others.