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NEW QUESTION: 1
The Walton Health Plan uses the fee-for-service pharmaceutical reimbursement approach known as the maximum allowable cost (MAC) method. If Walton's MAC list specifies a cost of 8 cents per tablet for a particular drug but the participating pharmacy pays 10 cents per tablet for the drug, then Walton will be obligated to reimburse the pharmacy for
A. 10 cents per tablet, but the pharmacy must refund the extra 2 cents per tablet to the subscriber
B. 10 cents per tablet, and the pharmacy is not required to refund the extra 2 cents per tablet to the subscriber
C. 8 cents per tablet, but the pharmacy can bill the subscriber for the remaining 2 cents per tablet
D. 8 cents per tablet, and the pharmacy cannot bill the subscriber for the remaining 2 cents per tablet
Answer: D
NEW QUESTION: 2
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Answer: B
NEW QUESTION: 3
An investor faces the following investment scenarios:
Scenario Probability Return
Bull market 60% 30%
Neutral market 30% 7%
Market crash 10% -25%
The variance of the investor's rate of return is ________.
A. 17.6%%
B. 4.17%%
C. 307.4%%
D. 6.17%%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The expected return equals 0.6 * 30% + 0.3 * 7% + 0.1*(-25%) = 17.6%. To calculate the variance, an easy way is to first calculate the second moment, which is the expected value of the square of the return.
Thus, the second moment equals 0.6*[(30%)
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