Multiple Choice
Consider the following two investment alternatives.First,a risky portfolio that pays 20% rate of return with a probability of 60% or 5% with a probability of 40%.Second,a treasury bill that pays 6%.If you invest $50,000 in the risky portfolio,your expected profit would be _________.
A) $3,000
B) $7,000
C) $7,500
D) $10,000
Correct Answer:
Verified
Correct Answer:
Verified
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