Use the Following to Answer Questions

question 129

Multiple Choice

Use the following to answer questions:
Scenario: Buying Shares
Geordie is considering buying shares in two companies, Apple and Microsoft. If he invests $1,000 in Apple, there is a 40% probability that his investment will be worth only $800 and a 60% probability that it will be worth $1,200 at the end of a year. If he invests $500 in Apple, there is a 40% probability that his investment will be worth $400 and a 60% probability that it will be worth $600 at the end of a year. The corresponding numbers for investment in Microsoft are identical.
-(Scenario: Buying Shares) Look at the scenario Buying Shares. The probability that Geordie will sustain a loss is _____ if he invests $1,000 in either Apple or Microsoft and is _____ if he invests $500 apiece in Apple and in Microsoft.

• A) 40%; 40%
• B) 40%; 16%
• C) 80%; 20%
• D) 40%; 80%

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Definitions:

Growth Strategy

A plan of action designed to increase the size, revenue, or market share of a business.

Organization's Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business organization.

Values

Core beliefs or standards that guide the behavior and decision-making processes of individuals and organizations.

Accomplishes

Achieves or completes successfully.