THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 251

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
Suppose X and Y are two random variables with E(X) = 1.50,E(Y) = 0.55,E(XY) = 0.80,Var(X) = 0.25,and Var(Y) = 0.2475.
-What is the value of Var(2X - 3Y) ?

• A)-0.2425
• B)3.2275
• C)3.0775
• D)3.5275

Calculate the simple rate of return on investments and understand its implications on investment decisions.

Determine the payback period for an investment project and interpret its significance.

Calculate the net present value (NPV) of investment opportunities and understand its importance in investment decision-making.

Understand the concept and calculation of the internal rate of return (IRR) for investment decisions.

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Definitions:

Landslide

The movement of rock, earth, or debris down a slope due to gravity, often triggered by factors like rainfall, earthquakes, or human activity.

Subduction Zone

A region of the Earth's crust where one tectonic plate is being forced under another, often resulting in volcanic activity and earthquakes.

Tectonic Setting

The geological and geographic location in relation to the movements and boundaries of Earth's tectonic plates.

Transform Fault

A type of strike-slip fault where two tectonic plates slide past each other horizontally, commonly found at the boundary between oceanic plates.