Which of the following is the equation for determining an expected value?
A)(1 - Risk factor)× PDV.
B)(Risk factor - 1)× PDV.
C)(1 - Risk factor)÷ PDV.
D)(Risk factor - 1)÷ PDV.

Question

Quizplus · Accepted Answer

The formula for expected value is given by multiplying the probability of an event occurring with the monetary value of that event and then summing up those values for all possible events. In this case, the expected value is calculated as (1 - Risk factor) multiplied by the present discounted value (PDV). Therefore, the correct choice is A.

Which of the Following Is the Equation for Determining an Expected