If an Investment Offered an Expected Payoff of $100 with $0

question 49

Multiple Choice

If an investment offered an expected payoff of $100 with $0 variance, you would know that:

• A)Half of the time the payoff is $100 and the other half it is $0
• B)The payoff is always $100
• C)Half of the time the payoff is $200 and the other half it is $0
• D)Half of the time the payoff is $200 and the other half it is $50

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Definitions:

Asset Account

Represents tangible and intangible items of value owned by a company, showing up on the balance sheet.