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An Investment Opportunity Has Two Possible Outcomes, and the Value

Question 107

Multiple Choice

An investment opportunity has two possible outcomes, and the value of the investment opportunity is $250. One outcome yields a $100 payoff and has a probability of 0.25. What is the probability of the other outcome?


A) 0
B) 0.25
C) 0.5
D) 0.75
E) 1.0

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