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

question 21

Multiple Choice

Assume the probability of a pessimistic,most likely and optimistic state of nature is .25,.55 and .20,and the returns associated with those states of nature are 5%,10%,and 13% for asset Y.Based on this information,the expected return,standard deviation,and coefficient of variation for asset Y are:

• A)10.50%,2.96% and 0.395 respectively
• B)10.35%,2.86% and 0.345 respectively
• C)9.55%,2.86% and 0.315 respectively
• D)9.35%,2.76% and 0.295 respectively
• E)none of the above

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Definitions:

Societal Goals

Objectives or aims that are deemed important or beneficial for the society as a whole.

Higher Levels of Intelligence

A state of advanced cognitive ability that includes superior problem-solving skills, faster learning, and the ability to understand complex concepts more easily.

Industriousness

A trait characterized by a persistent and hardworking approach to tasks and goals, often leading to success in endeavors.

High Aspirations

The desire to achieve great success or high standards.