An Investor Has a 35% Chance of Making $1000 and a 65

question 19

Multiple Choice

An investor has a 35% chance of making $1000 and a 65% chance of making $10 000, what is the
Expected payoff for this investor?

• A) $11 000
• B) $6 850
• C) $7 500
• D) $10 000

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Definitions:

Social Comparison

Examining the difference between oneself and another person.

Downward Social Comparison

Comparing yourself to people worse off than you.

Well-off Neighborhood

An affluent area characterized by high standards of living, quality housing, and higher income levels among residents.

Looking-glass Self

A social psychological concept that suggests individuals shape their self-concepts based on how they believe others perceive them.