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    An Investment Opportunity Has Two Possible Outcomes
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An Investment Opportunity Has Two Possible Outcomes

Question 105

Question 105

Multiple Choice

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


A) -$400
B) $0
C) $150
D) $300
E) none of the above

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