A payoff matrix compares a set of possible rates of return on an investment,with which of the following?
A)the probabilities of occurrence
B)the standard deviation of each occurrence
C)the variance of each occurrence
D)the average return of each occurrence by its squared variance

Question

Quizplus · Accepted Answer

A payoff matrix compares the possible rates of return on an investment, with the probabilities of occurrence of the events that could affect the returns. This allows investors to weigh the potential returns against the likelihood of different outcomes, helping them make informed decisions about investment strategies.

A Payoff Matrix Compares a Set of Possible Rates of Return