Consider the Following Scenario When Answering the Following Questions

question 93

Multiple Choice

Consider the following scenario when answering the following questions:
Ivett and Desiree are considering playing a game called Twenties versus Fifties.In this game,Ivett will place a $20 bill on the table,and Desiree will place a $50 bill on the table.Both players will then toss a fair coin.If both Ivett and Desiree toss heads or if they both toss tails,Ivett wins the $70 on the table.If one woman tosses heads and the other tosses tails,Desiree wins the $70 on the table.
-For Desiree,the expected value of this game is

• A) -$15.
• B) -$35.
• C) $15.
• D) $35.
• E) $70.

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Definitions:

Perfectly Negatively Correlated

A statistical measure indicating that two variables move in opposite directions with a correlation coefficient of -1.

Equal Weighted

An investment approach where each asset in a portfolio is given the same financial importance.

Portfolio Return

The overall gain or loss achieved by an investment portfolio, comprising assets of diverse types.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, indicating the relative risk of an investment.