Which of the Following Chances Has the Biggest Expected Return

question 72

Multiple Choice

Which of the following chances has the biggest expected return?

• A) a 100% chance of getting $5,000
• B) a 40% chance of winning $10,000 and a 60% chance of winning $0
• C) a 50% chance of winning $10,000, 30% chance of winning $20,000 and a 20% chance of losing $20,000
• D) All of the above have the same expected return.

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