Use the Following to Answer Questions

question 146

Multiple Choice

Use the following to answer questions :
Scenario: Diversification
Morris is considering investing $10 000 in a sunglass company or a rain poncho company.If it is a rainy year and he invests only in the sunglass company,he will lose $5 000.However,if it is a rainy year and he invests only in the rain poncho company,he will earn $10 000.If it is a sunny year and he invests only in the sunglass company,he will earn $10 000;if he invests only in the rain poncho company,he will lose $5 000 in a sunny year.There is a 50% chance of a sunny year and a 50% chance of a rainy year.
-(Scenario: Diversification) Use Scenario: Diversification.If Morris invests all of his money in the sunglass company,what is his expected gain or loss?

• A) a loss of $2 500
• B) to break even
• C) a gain of $2 500
• D) a gain of $10 000

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Definitions:

Quadriceps Femoris

A large muscle group that includes the four prevailing muscles on the front of the thigh, responsible for extension of the knee.

Vastus Lateralis

The vastus lateralis is a muscle in the thigh that is one of the components of the quadriceps femoris, involved in extending the knee and stabilizing the patella.

Epitrochlearis

A small muscle found in some animals' forearm that assists in the extension of the forearm, not consistently present in human anatomy.

Flexor Carpi Radialis

A muscle in the forearm that flexes and abducts the hand at the wrist.