Scenario 5.4: Suppose an Individual Is Considering an Investment in Which There

Multiple Choice

Scenario 5.4:
Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below:
The expected value of the investment is $25. Although all the information is correct, information is missing.
-Refer to Scenario 5.4. What is the variance of the investment?

A) -75
B) 275
C) 3,150
D) 4,637.50
E) 8,125