A $600 Investment Has the Following Payoff Frequency: a Quarter

question 10

Multiple Choice

A $600 investment has the following payoff frequency: a quarter of the time it will be $0; three quarters of the time it will pay off $1000. Its standard deviation and value at risk respectively are:

• A) $750; $600
• B) $433; $600
• C) $0; $1,000
• D) $433; $1,000

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Definitions:

Peripheral Vision

The area of visual perception that occurs outside the central area of focus, allowing one to see objects that are not in the direct line of sight.

Receptors

Specialized cells or proteins in the body that detect and respond to specific substances, such as hormones, neurotransmitters, or environmental stimuli.

Rods

Photoreceptor cells in the retina of the eye responsible for vision at low light levels, but not color detection.

Myopia

A vision condition where close objects are seen clearly, but distant objects appear blurred.