Using Standard Economic Models of Investment Choices in the Presence

question 7

Multiple Choice

Using standard economic models of investment choices in the presence of uncertainty,the investor knows:

• A) The exact return on investment
• B) Probability of a positive return on investment
• C) Nothing about the expected return
• D) The distribution of the investment's returns

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Definitions:

Brain Drain

The tendency for talented people from developing countries to become educated in a developed country and remain there after graduation.

Developing Countries

are nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) compared to more developed countries.

Malnutrition

A condition that results from eating a diet in which one or more nutrients are either not enough or are too much, causing health problems.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.