You have a decision to invest $10,000 in any of four different companies. You estimate the
Probabilities that the economy will be favorable or unfavorable and you estimate the percent
Returns over the next year.
What is the expected value for Company 2?
A) 9.20%
B) 9%
C) 9.6%
D) 9.4%

Question

You have a decision to invest $10,000 in any of four different companies. You estimate the
Probabilities that the economy will be favorable or unfavorable and you estimate the percent
Returns over the next year. 
What is the expected value for Company 2?
A) 9.20% 
B) 9% 
C) 9.6% 
D) 9.4%

Quizplus · Accepted Answer

9.6%

You Have a Decision to Invest $10,000 in Any of Four