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:

Scope

The extent, range, or breadth of something, especially a project, research, discussion, or activity, outlining its limitations and objectives.

Heart Function

Refers to the role of the heart in pumping blood throughout the body, supplying oxygen and nutrients while removing carbon dioxide and waste products.

Normal Activity

Typical or routine actions or functions under standard conditions or circumstances.

Assessed

Evaluated or estimated the nature, ability, or quality of something or someone, often used in contexts of taxation, education, and healthcare.