SOLUTION: An investment has a 20% chance of losing $20, a 30% chance of making $10, a 40% chance of making $20, and a 10% chance of making $100. What is the value of the investment?

SOLUTION: An investment has a 20% chance of losing $20, a 30% chance of making $10, a 40% chance of making $20, and a 10% chance of making $100. What is the value of the investment?

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Question 1148567: An investment has a 20% chance of losing $20, a 30% chance of making $10, a 40% chance of making $20, and a 10% chance of making $100. What is the value of the investment?
Answer by VFBundy(438) (Show Source): You can put this solution on YOUR website!
.20 * (-20) = -4
.30 * (+10) = +3
.40 * (+20) = +8
.10 * (+100) = +10

-4 + 3 + 8 + 10 = +17

The value of the investment is $17.

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