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Assume that there is a new investment opportunity that comes your way. You believe that there is a 65% chance it will pay off, in
Assume that there is a new investment opportunity that comes your way. You believe that there is a 65% chance it will pay off, in which case you will make $500 profit. There is also a 35% chance it won't pay off, in which case you would lose your $100 investment. What is the expected value of this opportunity? O A. $185 O B. $500 O C. $400 O D. $290 QUESTION 2 This heuristic is the tendency to assess a choice as less risky when a person has positive feelings towards it. Conversely, choices associated with negative emotions are seen as more risky than they really are. O A. Availability O B. Affect Heuristic C. Representativeness O D. Anchoring
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