Hole Con Shooz,Inc

question 68

Multiple Choice

Hole Con Shooz,Inc.has normally distributed returns with an expected return of 15% and a standard deviation of 5%,while Ed Allenmunds Shooz,Inc.has normally distributed returns with an expected return of 15% and a standard deviation of 15%.Which of the following is true?

• A) Ed Allenmunds' investors are not being adequately compensated for relevant risk.
• B) Hole Con is likely to experience returns larger than those of Ed Allenmunds.
• C) Ed Allenmunds is more likely to have negative returns than Hole Con.
• D) Rational investors will prefer Ed Allenmunds, Inc. over Hole Con Shooz, Inc.

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Definitions:

Hypothalamus

A region of the brain that coordinates the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Thalamus

A part of the brain located in the center of the cerebral hemisphere, which acts as a relay station for sensory information.

Epithalamus

A posterior segment of the diencephalon of the brain, involved in the regulation of sleep-wake cycles and the secretion of melatonin from the pineal gland.

Corpora Quadrigemina

Located in the midbrain, the corpora quadrigemina is composed of four colliculi - two superior and two inferior - involved in visual and auditory reflexes.