Use the Information for the Question(s)below

question 45

Multiple Choice

Use the information for the question(s) below.
Big Cure and Little Cure are both pharmaceutical companies.Big Cure presently has a potential "blockbuster" drug before the Food and Drug Administration (FDA) waiting for approval.If approved,Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure.Little Cure has 10 separate less important drugs before the FDA waiting for approval.If approved,each of Little Cure's drugs would produce $100 million in net income for Little Cure.The probability of the FDA approving a drug is 50%.
-Consider a portfolio that consists of an equal investment in 20 firms.For each of these firms,there is a 70% probability that the firms will have a 16% return and a 30% that they will have a -8% return.Each of these firms' returns is independent of all others.The standard deviation of this portfolio is closest to:

• A)2.5%
• B)4.2%
• C)8.8%
• D)11.0%

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Pregnancy and Childbearing

Topics related to the process of conceiving, being pregnant with, and giving birth to children.

Caribbean

A region consisting of the Caribbean Sea, its islands, and the surrounding coasts, known for its diverse cultures and tropical climates.

African Slaves

Individuals from Africa who were forcibly brought to and held in bondage in various parts of the world, particularly in the Americas, from the 16th to the 19th century.

Americas

A geographical designation referring to the entirety of the continents of North and South America and their associated islands.