Risky Undertaking ​ Suppose You Make a $2,000 Investment in a Risky

question 253

Essay

Risky Undertaking ​
Suppose you make a $2,000 investment in a risky undertaking.There is a 50% chance that the payoff from the investment will be $5,000,a 20% chance that you will just get your money back,and a 30% chance that you will receive nothing at all from your investment. ​ ​
-{Risky Undertaking Narrative} Find the expected value of the net profit from your investment of $2,000.

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Definitions:

3-Pentanone

A ketone with the formula C5H10O, characterized by a three-carbon chain between the carbonyl group and the end of the molecule.

Ethylene Glycol

A colorless, practically odorless, poisonous, and hygroscopic liquid with sweet taste, used as antifreeze in cooling and heating systems.

Acetal

An acetal is a functional group characterized by two ether-like oxygen atoms bonded to the same carbon atom, commonly formed from the reaction of an aldehyde and an alcohol.

Acetal

A carbon atom connected to an alkyl group, two -OR groups, and a hydrogen atom, typically formed from the reaction between an aldehyde and alcohol.