A Manager Is Attempting to Assess the Probability of a Recession

question 7

Multiple Choice

A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability.The manager believes there is a 33 percent chance the recession will end in six months and profits will return to $100 million.However,there is a 67 percent chance the recession will not end in six months,resulting in a $7 million loss.The standard deviation of profits over the next six months is:

• A) $50.31 million.
• B) $57.40 million.
• C) $28.31 million.
• D) $0 million.

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Definitions:

Heart Failure

A medical condition in which the heart is unable to pump blood efficiently throughout the body, leading to symptoms such as fatigue, breathlessness, and fluid retention.

Jugular Vein Pulsations

Observable pulsing of the jugular veins in the neck, which can indicate the heart's function and central venous pressure.

Normal Splitting

A physiological phenomenon where the heart's second sound (S2) separates into two distinct sounds during inhalation due to the delay in closure between the aortic and pulmonary valves.

Inspiration

The process of drawing air into the lungs, a vital part of the respiratory cycle.