Assume the Probability of a Pessimistic, Most Likely and Optimistic

question 94

Multiple Choice

Assume the probability of a pessimistic, most likely and optimistic state of nature is .25, .55 and .20, and the returns associated with those states of nature are 5%, 10%, and 13% for asset Y.Based on this information, the expected return, standard deviation, and coefficient of variation for asset Y are: Same as 77 with "none of the above" answer….ditto for 80, 82, 84, 85

• A)10.50%, 2.96% and 0.395 respectively
• B)10.35%, 2.86% and 0.345 respectively
• C)9.55%, 2.76% and 0.315 respectively
• D)9.15%, 2.66% and 0.295 respectively
• E)none of the above

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Definitions:

Dominant Firms

Companies that have a major portion of market share and can significantly influence market conditions and prices.

New Products

Items or services that have recently been introduced to the market and offer new features, functionalities, or benefits to consumers.

Market Economies

Economic systems in which economic decisions and pricing are guided by the interactions of citizens and businesses rather than by central planning.

Product Innovation

The process of developing new products or significantly improving existing ones to meet consumer needs or open new markets.