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A 1% Chance of Winning $700 and a 99% Chance

Question 62

Multiple Choice

A 1% chance of winning $700 and a 99% chance of losing $7.07 would be classified as a(n)


A) better-than-fair gamble.
B) expected value.
C) fair gamble.
D) one that a risk-averse person would take.
E) unfair gamble.

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