What Is the Expected Payoff of an Investment That Yields

question 33

Multiple Choice

What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?

• A) $325
• B) $5,500
• C) $1,175
• D) $2,750

---

Definitions:

Unaided Recall

A measure of memory where respondents reveal what brands or products come to mind without any cues or prompts.

Brand

The identity, including the name, symbol, or design, that distinguishes a product or company from its competitors in the eyes of the customer.

Projective Technique

A psychological methodology used to uncover people’s true opinions and feelings by having them project these onto an ambiguous task or stimuli.

Express Themselves

The act of conveying thoughts, feelings, or ideas through various means, such as speech, writing, or art.