Question
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 8% chance of returning
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 8% chance of returning $8,000,000 profit, a 25% chance of returning $3,500,000 profit, and a 67% chance of losing the million dollars. The second company, a hardware company, has a 5% chance of returning $5,000,000 profit, a 33% chance of returning $2,000,000 profit, and a 62% chance of losing the million dollars. The third company, a biotech firm, has a 5% chance of returning $7,000,000 profit, a 30% of no profit or loss, and a 65% chance of losing the million dollars. Order the expected values from smallest to largest.
- first, second, third
- second, first, third
- third, first, second
- first, third, second
- third, second, first
- second, third, first
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