It Costs $1,000 to Enter the Following Game of Chance,which

question 16

Multiple Choice

It costs $1,000 to enter the following game of chance,which is based on the outcome of a coin toss (fair coin) .If the coin comes up 'heads' then you win and walk away with $1,100,which is a 10% rate of return.If the coin comes up 'tails',then you lose and walk away with $900,which is a -10% rate of return.What is the variance of the returns?

• A) 0.05
• B) 0.1
• C) 0.09
• D) 0.01
• E) 0.5

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Definitions:

Transverse Processes

Lateral projections from the vertebrae to which muscles and ligaments attach, participating in the movement and stability of the spine.

Cervical Vertebrae

The seven vertebrae in the human neck that support the head and allow a range of movements.

Levator Scapulae

A muscle in the back and side of the neck that elevates the scapula (shoulder blade).

Movable

Capable of being moved or adjusted, often applied to parts of the body or mechanical components.