Which of the following statements is true?

Responses

There are usually only $5$ or $6$ meaningful states of nature.

There are usually only $5$ or $6$ meaningful states of nature.

The concept of assigning weights to the possible states of nature is only a way of describing the mental process analysts go through to determine the expected return.

The concept of assigning weights to the possible states of nature is only a way of describing the mental process analysts go through to determine the expected return.

Investment analysts do not need to be skilled at predicting the future to properly assign expected returns.

Investment analysts do not need to be skilled at predicting the future to properly assign expected returns.

Investment analysts spend most of their time building tables that reflect all the possible states of nature and assigning probabilities to each.

Investment analysts spend most of their time building tables that reflect all the possible states of nature and assigning probabilities to each.