Question

Please please help me out!!!

Answer 1

Answer: 8.50 dollars

The result is positive, so this is a gain (instead of a loss)

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Explanation:

Focus on the "stock JKL" row only when it comes to the percentages we'll use. We need to convert them to decimal form

15% ---> 0.15

65% ---> 0.65

20% ---> 0.20

I just moved the decimal point over 2 spots, or you can divide by 100 (eg: 15% = 15/100 = 0.15)

Multiply each of these values by their corresponding loss or gain. Use negative numbers for losses

15% chance of losing $25 ---> 0.15*(-25) = -3.75

65% chance of winning $5 ---> 0.65*(5) = 3.25

20% chance of winning $45 ---> 0.20*(45) = 9

Now add up those results: -3.75+3.25+9 = 8.50