If You Randomly Select a Committee of Two from a Group

question 54

Multiple Choice

If you randomly select a committee of two from a group of two men and two women, what is the probability that the group is all female?

• A) 1/2
• B) 1/4
• C) 1/6
• D) 1/12

Grasp the significance of diversification in reducing portfolio risk.

Know the measures of risk including variance, standard deviation, and the coefficient of variation.

Understand the impact of risk aversion on investment decisions and market outcomes.

Recognize the relevance of the Capital Asset Pricing Model (CAPM) in evaluating investments.

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Definitions:

Free Trade Area

A free trade area is a region where a group of countries have signed a free-trade agreement, reducing or eliminating trade barriers among them.

Labor Mobility

The ease with which workers can move between jobs, regions, or industries, often influencing economic efficiency and worker welfare.

Fiscal Policies

Governmental measures related to tax, spending, and borrowing aimed at influencing a country's economy.

Comparative Advantage

The ability of a country, company, or individual to produce a good or service at a lower opportunity cost than competitors.