Compute the Expected Return, Standard Deviation, and Value at Risk

question 35

Essay

Compute the expected return, standard deviation, and value at risk for each of the following investments:
Investment (A): Pays $800 three-fourths of the time and a $1200 loss otherwise.
Investment (B): Pays $1000 loss half of the time and a $1600 gain otherwise.
State which investment will be preferred by each of the following investors, and explain why.
(i) a risk-neutral investor.
(ii) an investor who seeks to avoid the worst-case scenario.
(iii) a risk-averse investor.

Identify and understand different training methods and their applications.

Understand the evaluation process of training programs.

Recognize the importance and types of diversity training.

Know the elements and importance of experiential training methods.

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Definitions:

Capital Punishment

The legally authorized killing of someone as punishment for a crime, typically murder or treason.

Supreme Court

The highest federal court in the United States, or the highest court of many other countries, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or national law.

Social Responsibility Values

Ethical principles that emphasize the importance of acting in ways that benefit society at large.

Parenting Style

Sets of child-rearing behaviors a parent uses across situations to form a child-rearing climate.