Let's observe three distinct styles of investing $1000. The profits are evaluated in the following three ways:
Style No. 1:
$10 000 profit with probability 0.15 and $1000 loss with probability 0.85.
Style No. 2.
$1000 profit with probability 0.50 $500 profit with probability 0.30 and $500 loss with probability 0.20.
Style No. 3:
Guaranteed $400 profit.
a) Which investment style has the best expected value?
b) Which investment style has the greatest risk?
c) Which metod would you prefer?
Thank you for your input!

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I'll take a crack at it. Just letting you know that i'm starting it (i saw your chat)

Thanks mate!

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