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An Investment Pays $1,000 Three Quarters of the Time, and $0

Question 105

Multiple Choice

An investment pays $1,000 three quarters of the time, and $0 the remaining time. Its expected value and variance respectively are:

A) $1,000: 62,500 dollars²
B) $750; 46,875 dollars
C) $750; 62,500 dollars
D) $750; 187,500 dollars²

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