Expected value refers to the
A) Future value of a current payment.
B) Present value of a future payment.
C) Probable value of a future payment.
D) Difference in the rates of return on risky and safe investments.

Question

Quizplus · Accepted Answer

Expected value is the probable value of a future payment or outcome, based on the probabilities of all possible outcomes. It is used in decision making to determine the average outcome or expected return. Options A and B refer to time value of money concepts, and D is unrelated to expected value.

Expected Value Refers to the