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Naya [18.7K]
3 years ago
13

On the average, how much would you expect to win by playing the following game? A 50% chance to win $2000, a 30% chance to lose

$1000, and a 20% chance to lose $2000.
Business
1 answer:
stich3 [128]3 years ago
8 0

Answer:

Average expected chance of winning = $300

Explanation:

Average expectation to win shall be computed as follows

Chance to win = 50% of $2,000 = $1,000

Less: Chance of losing = 30% of $1,000 = -$300

         Chance of losing = 20% of $2,000 = -$400

This is basically computed with the help of probability distribution provided, and adding the entire products.

Average expected chance of winning = $1,000 -$300 - $400 = $300

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Answer:

9.52%

Explanation:

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Risk premium = market rate of return - risk free rate

2.95% + (0.90 x 7.30%) = 9.52%

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Answer:

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4 0
4 years ago
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