Domingo Has a Total Wealth of $500,000 Composed of a House

question 154

Multiple Choice

Domingo has a total wealth of $500,000 composed of a house worth $100,000 and $400,000 in cash.He keeps the cash in a safe deposit box,so that it is completely safe.However,there is a 10% chance that his house will burn down by the end of the year and be worth nothing and a 90% chance that nothing will happen to it.Without insurance,the expected value of his end-of-year wealth is:

• A)$410,000.
• B)$450,000.
• C)$490,000.
• D)$485,000.

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Definitions:

Benzodiazepine

A class of psychoactive drugs known for their sedative, hypnotic, anxiolytic, and muscle relaxant properties.

Valium

A prescription medication used to treat anxiety, muscle spasms, seizures, and other conditions, known for its calming effects.

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

First-Generation Antipsychotics

A class of drugs used primarily to treat psychosis, including schizophrenia, characterized by their dopamine antagonist properties.