The Weighted Average of the Returns Across All Possible States

question 23

Multiple Choice

The weighted average of the returns across all possible states of the world,where the weights are equal to the probabilities with which the different states occur is called ???????????_________.The ________ indicates how great the return is expected to be "on average."

• A) Distribution; variance
• B) The expected value; expected return
• C) Rate of return; expected value
• D) Variance; distribution

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Definitions:

Jimmy Carter

The 39th President of the United States, serving from 1977 to 1981, notable for his work in diplomacy, environmentalism, and later, humanitarian efforts.

Shah Mohammed Reza Pahlavi

The last monarch (Shah) of Iran before the Iranian Revolution of 1979, known for his efforts to modernize and Westernize Iran.

Political Freedom

The right of individuals to participate in political life, including the freedom to express opinions, join political parties, and vote without coercion.

Corruption

The abuse of entrusted power for private gain, which can be found in both public and private sectors.