Assume the Probability of a Pessimistic, Most Likely and Optimistic

question 26

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:

• A)12.0% and 4.0%
• B)12.7% and 2.3%
• C)12.7% and 4.0%
• D)12.0% and 2.3%
• E)none of the above

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Definitions:

Core Self-Evaluations

A personality assessment theory that describes fundamental assessments individuals make about their own abilities and worth.

Employee Engagement

The level of an employee's psychological investment in their organization, characterized by enthusiasm for work, commitment, and a sense of belonging.

Core Self-Evaluations

A personality trait concept that encompasses an individual’s subconscious, fundamental evaluations about themselves, their own abilities, and their control over their environment.

Employee Engagement

The emotional commitment and involvement employees have towards their organization, positively affecting productivity and retention.