If expected profit is R and variance $\sigma$ ² = 0,then: A) R_i = 0 for all i B) R - R_i is a positive constant for all i. C) R - R_i is a negative constant for all i. D) R_i = 0 for all i. E) R_i = R for all i.

Question

Quizplus · Accepted Answer

If the variance is 0, it means there is no variability in the profits, so each individual profit $ R_i $ must equal the expected profit $ R $.

If Expected Profit Is R and Variance σ\sigmaσ 2 = 0,then: A) Ri = 0 for All I

If Expected Profit Is R and Variance $\sigma$ ² = 0,then:
A) R_i = 0 for All I