Use the Following to Answer Questions

question 5

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 half of his money in the sunglass company and half in the rain poncho company,he will earn _____ in a sunny year and _____ in a rainy year.

• A) $2 500;$0
• B) $1 250;$1 250
• C) -$2 500;$2 500
• D) $2 500;$2 500

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Definitions:

Relevant

Pertaining to the matter at hand; having significant and demonstrable bearing on the facts or issues.

Aspects of Life

Pertains to the different facets or components that make up the entirety of an individual's existence, such as social, economic, cultural, and emotional elements.

Sociologists

Scientists who study societies, focusing on patterns of social relationships, social interaction, and culture.

Religious Claims

Assertions or beliefs made based on faith or spirituality, often pertaining to the moral, ethical, or supernatural.