Exhibit 1-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 52

Multiple Choice

Exhibit 1-4
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
You have concluded that next year the following relationships are possible: $\begin{array}{llc}\text { Economic Status } & \text { Probability } & \text { Rate of Return } \\\hline \text { Weak Economy } & .15 & -5 \% \\\text { Static Economy } & .60 & 5 \% \\\text { Strong Economy } & .25 & 15 \%\end{array}$
-Refer to Exhibit 1-4. What is your expected rate of return [E(Ri) ] for next year?

• A) 4.25%
• B) 6.00%
• C) 6.25%
• D) 7.75%
• E) 8.00%

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Definitions:

Sex Ratio

The demographic concept expressing the number of males per hundred females in a given population.

Life Expectancy

The average period that an individual is expected to live, based on statistical measures of mortality patterns.

Age-Sex Pyramid

An age-sex pyramid is a graphical representation that shows the distribution of various age groups in a population which typically forms the shape of a pyramid when the population is growing.

Gender Equality

The state in which access to rights or opportunities is unaffected by gender, ensuring equal treatment of men and women in various spheres of life.