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

question 7

Multiple Choice

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

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

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Definitions:

Stroking Technique

A method used in communication or therapy that involves positive reinforcement to encourage desired behavior.

Conflict

A situation where there is a clash of interests, values, actions, views, or directions between two or more parties.

Positive

Characterized by the presence or possession of features or qualities rather than their absence, often associated with constructive, optimistic, or favorable outcomes or attitudes.

Invalid Hypothesis

A hypothesis that cannot be supported or proven through empirical data or experimentation due to logical inconsistencies or lack of empirical evidence.