Suppose Dean Has $500 and There Are Two Companies He

Multiple Choice

Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon,which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming,which has a payoff of 4X with 25% probability and $0 with 75% probability.Dean's expected payoff from investing in Dog Gone Salon only is:

A) $1,000.
B) $500.
C) $0.
D) $1,500.