Question

Type the correct answer in each box. Use numerals instead of words.

Answer 1

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 )