Merced is considering an investment that has a 50% probability of rising in value by 60% and a 50% probability of falling value by 40%. Is this a fair bet?
A) Yes, the odds are that Merced will gain a positive return.
B) Yes, the odds are that Merced will break even.
C) No, the odds are that Merced will gain a positive return.
D) No, the odds are that Merced will have a negative return.
Correct Answer:
Verified
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