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Author Question: An investment opportunity is a sure thing; it will pay off 100 regardless of which of the three ... (Read 16 times)

imanialler

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  • Posts: 539
on: Jul 1, 2018
An investment opportunity is a sure thing; it will pay off 100 regardless of which of the three possible outcomes comes to pass. The variance of this investment opportunity:
 
  A) is 0.
  B) is 1.
  C) is 2.
  D) is -1.
  E) cannot be determined without knowing the probabilities of each of the outcomes.

Question 2

Suppose that the prices of good A and good B were to suddenly double. If good A is plotted along the horizontal axis,
 
  A) the budget line will become steeper.
  B) the budget line will become flatter.
  C) the slope of the budget line will not change.
  D) the slope of the budget line will change, but in an indeterminate way.


emilymalinowski12

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

C


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