When Considering Expected Returns,what Is True About the States of the World

question 9

Multiple Choice

When considering expected returns,what is true about the states of the world?

• A)They must have probabilities that sum to 100%.
• B)They represent all possible outcomes.
• C)They are sometimes simplified into outcomes such as boom,bust,and normal.
• D)Statements A through C are all true.

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Definitions:

Line Structures

The most straightforward organizational structure, comprising direct lines of authority from the top manager to subordinate employees.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Line Structure

The simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.