Assume the Probability of a Pessimistic,most Likely and Optimistic State

question 135

Multiple Choice

Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.45 and .30,and the returns associated with those states of nature are 10%,12%,and 16% for asset X.Based on this information,the expected return and standard deviation of return are:

• A)12.0% and 4.0%
• B)12.7% and 5.0%
• C)12.7% and 4.0%
• D)12.0% and 5.0%
• E)none of the above

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Definitions:

Opiate Drugs

Substances derived from the opium poppy, used for their analgesic properties, but often associated with dependency.

Morphine

A powerful analgesic drug derived from opium, used to relieve severe pain.

Heroin

An illegal, highly addictive opioid drug derived from morphine, known for its euphoric effects but also associated with serious health risks.

Opiate Drugs

Narcotic drugs derived from opium or opium-like compounds, used medically to relieve pain but can lead to addiction.