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Which of the Following Chances Has the Biggest Expected Return

Question 162

Multiple Choice

Which of the following chances has the biggest expected return?


A) a 100% chance of getting $1,500
B) a 60% chance of winning $3,000 and a 40% chance of winning $0
C) a 50% chance of winning $3,000, 20% chance of winning $6,000 and a 30% chance of losing $6,000
D) All of the above have the same expected return.

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