Use the Information for the Question(s)below

question 89

Essay

Use the information for the question(s)below.
Big Cure and Little Cure are both pharmaceutical companies. Big Cure presently has a potential 'blockbuster' drug before the Therapeutic Goods Administration (TGA)waiting for approval. If approved, Big Cure's blockbuster drug will produce $1 billion in net income for Big Cure. Little Cure has 10 separate, less important drugs before the TGA waiting for approval. If approved, each of Little Cure's drugs would produce $100 million in net income for Little Cure. The probability of the TGA approving a drug is 50%.
-What is the diversification achieved by an investor if he invests in Wesfarmers, National Australia Bank and BHP Billiton?
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Definitions:

Psychological Dimensions

Aspects or factors that are used to describe and differentiate between individuals' psychological states and traits.

Sound Wave

A longitudinal wave consisting of compressions and rarefactions, which travels through a medium such as air or water and can be heard when they reach a person's or animal's ear.

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the back of the brain.

Thalamus

A part of the brain that acts as a relay station, transmitting information between different areas of the brain.