Firm a Sells Lemonade and Firm B Sells Hot Chocolate

question 8

Multiple Choice

Firm A sells lemonade and firm B sells hot chocolate.If you invest $100 if firm A, in one year you will get back $(30 + T) where T is the average temperature (Fahrenheit) during the summer.If you invest $100 in firm B, in one year you will get back $(150 - T) , where T is the average temperature during the summer.The expected value of T is 70 and the standard deviation of T is 10.If you invest $50 in firm A and $50 in firm B, what is the standard deviation of your return on your investment?

• A)10
• B)20
• C)5
• D)0
• E)None of the above.

Identify critical periods in the development of sensory systems and motor skills.

Understand the role of environmental and genetic factors in the development of motor skills.

Learn about the implications of rapid brain growth and critical developmental phenomena such as transient exuberance and pruning on cognitive and physical development.

Comprehend the development and refining of gross and fine motor skills through infancy and early childhood.

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Definitions:

Discount Factor(s)

A numerical factor used to calculate the present value of future cash flows, reflecting the time value of money.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, reflecting the asset’s gradual decrease in value.

Payback Period

The length of time it takes for an investment to recover its initial outlay in terms of profits or savings.

Initial Investment

The initial amount of money spent to start a project or business venture, often covering expenses like equipment and setup costs.