If an Investment Will Return $1,500 Half of the Time

question 63

Multiple Choice

If an investment will return $1,500 half of the time and $700 half of the time, the expected value of the investment is:

• A) $1,250.
• B) $1,050.
• C) $1,100.
• D) $2,200.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise that the other party has reasonably relied on to their detriment.

Restitution

A remedy in law requiring a party to restore the victim to the position they were in before the wrongful act.

Parol Evidence Rule

A legal principle that prevents the introduction of verbal statements that are outside the written contract, intended to clarify or contradict the document's terms.

Typographical Error

A mistake made in the typed or printed text, often referred to as a typo.