Multiple Choice
If an investment offered an expected payoff of $100 with $0 variance, you would know that:
A) half of the time the payoff is $100 and the other half it is $0.
B) the payoff is always $100.
C) half of the time the payoff is $200 and the other half it is $0.
D) half of the time the payoff is $200 and the other half it is $50.
Correct Answer:

Verified
Correct Answer:
Verified
Q71: Explain why a company offering homeowners insurance
Q72: If the probability of an outcome equals
Q73: An individual faces two alternatives for an
Q74: Which of the following statements is false?<br>A)
Q75: Suppose a saver is looking for the
Q77: The expected return from a portfolio made
Q78: What is the difference between standard deviation
Q79: The risk premium for an investment:<br>A) is
Q80: Explain why a riskier asset offers a
Q81: If the probability of an outcome is