Asaad Wants to Show Cheryl and Cindy a Card Trick

question 42

Multiple Choice

Asaad wants to show Cheryl and Cindy a card trick he has learned.He first asks Cheryl to draw one card at random from a standard deck of 52 cards.Cheryl draws out the 4 of hearts,shows the card to Cindy,and then lays it face down on the table in front of her.Asaad then extends the remaining cards for Cindy to make her selection.What is the probability that Cindy also will draw out a heart?

• A)0.25
• B)0.24
• C)0.02
• D)0.20

---

Definitions:

Required Rate of Return

The minimum rate of return on an investment deemed acceptable by an investor, considering the investment's risk.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.

Payback Period

Payback period is the duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.