Question
I need help with these three questions: a) It costs $100 to enter the following game of chance based on the outcome of a coin
I need help with these three questions:
a) It costs $100 to enter the following game of chance based on the outcome of a coin toss(fair coin). If the coin comes up'heads,' you walk away with $12. However, if the coin comes up'tails,' you walk away with $85. What is the expected return on thisgamble? Please show this as a percentage and round to 2 decimal places.
b) True orFalse? It is possible to hold a portfolio where the risk of the whole portfolio is lower than the risk of any asset within it.
c) What is another name for unsystematicrisk?
A.
Specific Risk
B.
Non-Diversifiable Risk
C.
Market Risk
D.
Total Risk
E.
Firm-Specific risk
I think it is a. Specific risk but I would like to double check.
Thank you.
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