Multiple Choice
Suppose Nara could invest her $1000 in a savings account or she could invest in the stock market. After one year, the savings account has a guaranteed 5 percent interest rate and the stock market has a 10 percent chance of tripling her money, and 90 percent chance of losing it all. What is Nara's expected wealth if she places her money in the stock market?
A) $300
B) $1,300
C) $50
D) $1,050
Correct Answer:
Verified
Correct Answer:
Verified
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