• anonymous
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!
Mathematics
• Stacey Warren - Expert brainly.com
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SOLVED
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