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Suppose That There Is a 25% Chance That an Investment

Question 20

Multiple Choice

Suppose that there is a 25% chance that an investment of $1,000 will rise in value to $1,400,a 25% chance that the investment will remain at $1,000,and a 50% chance that the investment will fall in value to $900.What is the expected profit associated with the investment?


A) $25
B) $50
C) $75
D) $100

Correct Answer:

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