The formula for expected value (EV) is ________.
A) interest rate x probability
B) income x probability
C) cost of risk x probability
D) cost of risk / probability
E) income / probability

Name: The formula for expected value (EV) is ________. A) interest rate x probability B) income x probability C) cost of risk x probability D) cost of risk / probability E) income / probability
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Question

Quizplus · Accepted Answer

The expected value (EV) is calculated by multiplying the income (or payoff) by the probability of its occurrence.

The Formula for Expected Value (EV) Is ________