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Consider the Following Gamble: on the Toss of a Fair

Question 10

Multiple Choice

Consider the following gamble: on the toss of a fair coin, you receive $10 million if a head appears and nothing if a tail appears. What is the expected payoff from the gamble?


A) $3 million
B) $5 million
C) $2 million
D) $1.5 million

Correct Answer:

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