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It Costs $1,000 to Enter the Following Game of Chance,which

Question 37

Multiple Choice

It costs $1,000 to enter the following game of chance,which is based on the outcome of a coin toss (fair coin) .If the coin comes up 'heads',you win and walk away with $2,000,which is a 100% rate of return.However,if the coin comes up 'tails',you lose and walk away with nothing,which is a - 100% rate of return.What is the expected return on this gamble?


A) 0%
B) 1,000%
C) 100%
D) 10%
E) -10%

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