If an Investment Has a 20% (0

question 5

Multiple Choice

If an investment has a 20% (0.20) probability of returning $1,000; a 30% (0.30) probability of returning $1,500; and a 50% (0.50) probability of returning $1,800; the expected value of the investment is:

• A) $1,433.33
• B) $1,550.00
• C) $2,800.00
• D) $1,600.00

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans, which outlines eight stages from infancy to adulthood.

Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.

Harlow

Refers to Harry Harlow, a psychologist known for his research on maternal separation and social isolation in rhesus monkeys.

Vygotsky

Lev Vygotsky, a Russian psychologist known for his theory on social development and the concept of the Zone of Proximal Development.