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You Have the Opportunity of Making a $5,000 Investment

Question 7

Multiple Choice

You have the opportunity of making a $5,000 investment. The outcomes one year from now will be either $4,500 or $6,000 with an equal chance of either outcome occurring. What is the expected outcome?


A) $4,500
B) $6,000
C) $5,250
D) $5,750
E) $5,000

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