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It costs $100 to enter the following game of chance based on the outcome of a coin toss (fair coin). If the coin comes up
It costs
$100
to enter the following game of chance based on the outcome of a coin toss (fair coin). If the coin comes up 'heads,' you walk away with
$125.
However, if the coin comes up 'tails,' you walk away with
$80.
What is the expected return on this gamble?
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