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A potential investment costs $3500. You estimate that the investment has four possible outcomes with equal probabilities. 1) it is worth $1,584 2) it
A potential investment costs $3500. You estimate that the investment has four possible outcomes with equal probabilities. 1) it is worth $1,584 2) it is worth $2,483 3) it is worth $3,214 4) it is worth $4,385 What is the expected value of this investment?
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Solution The expected value of this investment is 2945 To calculate the expected value we multiply ...
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
