Answer:
The investment is risky because it has only a
2% chance of making a significant
The expected value of the investment is $ 49,050
return
Explanation:
Investment = $50,000
Expected worth = ( Chance in % x Expected Worth )
30% x $40,000 = $12,000
50% x $50,100 = $25,050
20% x $60,000 = $12,000
Total Expected Worth = $49,050
Expected value is $49,050
Chance to make the same worth is 2% ( (50000-49050 ) / 50,000 )
