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    Managerial Economics
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    Exam 14: Risk Analysis
  5. Question
    If an Option Pays $6 One-Quarter of the Time and Loses
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If an Option Pays $6 One-Quarter of the Time and Loses

Question 15

Question 15

Multiple Choice

If an option pays $6 one-quarter of the time and loses $6 three-quarters of the time,then the variance σ\sigmaσ 2 = :


A) 0.
B) -3.
C) 9.
D) 12.
E) 27.

Correct Answer:

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