You have a $1,000,000 account to trade and wish to limit your positions to 0.75% at risk. You decide to establish stop losses at 8% and plan to buy a particular security at $100 per share. Your past record indicates that you make 15% on your average win and win 40% of the time. When you lose, your average loss is 8%. What is your expected outcome in this new position?

Gain $1,125.00

Lose $1,250.00

Lose $1,125.00

Gain $1,250.00