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Use the Information for the Question(s)below

question 62

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20 000 by purchasing 400 shares of BHP Billiton (BHP) at $13 per share, 500 shares of ANZ Bank (ANZ) at $20 per share, and 200 shares of Flight Centre (FLT) at $24 per share.
-Suppose over the next year BHP has a return of 12.5%, ANZ has a return of 20%, and FLT has a return of -10%. The return on your portfolio over the year is:

Understand the concept of expected value with perfect information and its application.

Apply decision-making criteria (maximax, maximin, equally likely, and expected monetary value) under different conditions of uncertainty and risk.

Calculate and understand the concept of expected monetary value (EMV) for different decision scenarios.

Distinguish between different decision-making criteria and understand their practical applications.

Definitions:

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