Jean wants to invest a gift of $4,250 in the stock market. A broker suggests two companies, Solar Solutions (SOLR) and Frontline

Question

3 years ago

5

Jean wants to invest a gift of $4,250 in the stock market. A broker suggests two companies, Solar Solutions (SOLR) and Frontline

Medical (FLMD). He provides the probabilities for an annual return on $4,250 based on their historical gains: SOLR: 50% chance of $1,000 gain, 35% chance of $200 gain, 15% chance of $600 loss FLMD: 80% chance of $750 gain, 20% chance of $100 loss Which is the best analysis of these investments?

Mathematics

2 answers:

yuradex [85] · Answer 1 · 2022-10-09T20:08:02+03:00

yuradex [85]3 years ago

7 0

Answer: A

Step-by-step explanation:

xeze [42] · Answer 2 · 2022-10-09T17:57:33+03:00

Personally i believe that SOLR would not be the best, because even tho you have 5% less chance of losing money in general, the amount of money won s very varied and if you do lose its 600 dlls. If you’re looking a constant source of income, then FLMD would be better because of the no fluctuations no their constant 80% chance of having 750 dlls gain. Which basically means 4 out of 5 times you don’t lose, and if you do is six times less than SOLR. Definitely the better choice in my opinion.