Consider the Following Two Investment Alternatives

Multiple Choice

Consider the following two investment alternatives.First,a risky portfolio that pays a 15 percent rate of return with a probability of 60% or a 5 percent return with a probability of 40%,and second,a T-bill that pays 6 percent.If you invest $50,000 in the risky portfolio,your expected profit would be __________.

A) $5,500
B) $7,500
C) $25,000
D) $3,000
E) none of these