Risk-neutral Icarus Airlines must commit now to leasing 1,2 or 3 new airplanes. It knows with certainty that on the basis of business travel alone, it will need at least 1 airplane. The marketing division says that there is a 50% chance that tourism will be big enough for a second plane only. Otherwise, tourism will be big enough for a third plane. This, plus revenue information, yields the following table: Refer to Scenario 5.8. The value to Icarus Airlines of complete information is: The correlation between an asset's real rate of return and its risk (as measured by its standard deviation) is usually: strictly linear. negative. chaotic. (D) positive. (E) flat. An investment opportunity has two possible outcomes, and the value of the investment opportunity is $250. One outcome yields a $100 payoff and has a probability of 0.25 . What is the probability of the other outcome? 0.25 (B) 0 (C) 0.75 (D) 1.0 (E) 0.5 The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line. Investor A will expect to earn a lower rate of return than investor B. B) Investors A and B will have different portfolios of the same standard deviation. Investors A and B will have different portfolios of the same rate of return. D) Investors A and B will have different portfolios but have the same level of risk aversion. Investors A and B will hold the same portfolio