A Project Has a 60% Chance of Doubling Your Investment

question 11

Multiple Choice

A project has a 60% chance of doubling your investment in one year and a 40% chance of losing half your money.What is the standard deviation of this investment?

• A) 25%
• B) 50%
• C) 62%
• D) 73%

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Definitions:

On Credit

Purchasing goods or services with the agreement to pay for them at a later date.

Assets

Resources owned by a business or individual that have economic value and can be converted into cash.

Capital

Financial resources or assets owned by an individual or business, used to fund operations, invest in business ventures, or acquire assets.

Liabilities

Monetary commitments or liabilities that a business is responsible for repaying to others in the future.