The value of an investment that is found by multiplying each possible outcome by the probability that it will occur, then summing these values is called the:
A) expected value.
B) standard deviation.
C) variance.
D) normal distribution.
E) probability distribution.

Question

Quizplus · Accepted Answer

This definition fits the definition of expected value, which is the average outcome of an investment based on the probability distribution of possible outcomes.

The Value of an Investment That Is Found by Multiplying