Assume the Probability of a Pessimistic, Most Likely and Optimistic

question 129

Multiple Choice

Assume the probability of a pessimistic, most likely and optimistic state of nature is .25, .45 and .30, and the returns associated with those states of nature are 10%, 12%, and 16% for asset X.Based on this information, the expected return and standard deviation of return are: Same as 73 with "none of the above" answer

• A)12.0% and 4.0%
• B)12.7% and 5.0%
• C)12.7% and 4.0%
• D)12.0% and 5.0%
• E)none of the above

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Definitions:

Dense Connective Tissue

A type of tissue that may be irregular, as in the dermis of the skin, or regular, as in tendons.

Collagen Fibers

Strong, flexible protein fibers that form the supportive framework of connective tissues in the body, including skin, bone, and cartilage.

Semifluid Matrix

A viscous, semi-liquid substance found within various biological systems, such as the cytoplasm of a cell, providing a medium for cellular processes.

Dermis

The layer of dense connective tissue beneath the epidermis in the skin of vertebrates.