Assume a Portfolio Has the Possibility of Returning 7%, 8

question 2

Multiple Choice

Assume a portfolio has the possibility of returning 7%, 8%, 10%, or 12%, with likelihood of 20%, 30%, 25%, and 25%, respectively. The expected value of the portfolio is:

• A)10.0%.
• B)9.0%.
• C)9.3%.
• D)9.25%.
• E)None of the above

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Definitions:

Prognosis

A medical opinion on the likely course and outcome of a disease.

Terminal Condition

A medical diagnosis indicating that a disease or illness cannot be cured and is likely to lead to the patient's death.

Physicians

Medical professionals who diagnose, treat, and help prevent diseases and injuries, providing healthcare and advice to patients.

Prognosis

The forecast of the probable course and outcome of a disease or situation.