A Project Has a 50% Chance of Doubling Your Investment

question 9

Multiple Choice

A project has a 50% chance of doubling your investment in one year and a 50% chance of losing half your money.What is the expected return on this investment project?

• A) 0%
• B) 25%
• C) 50%
• D) 75%

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Definitions:

Consistent

In the context of systems of equations, a property indicating that the system has at least one solution.

Inconsistent

Describes a system of equations that has no solution because the equations represent parallel lines which never intersect.

Graph

A schematic that depicts a setup of ties or connections among multiple objects through distinctive indicators like dots, lines, and bars.

Ordered Pairs

Ordered pairs are pairs of numbers used to represent the position of a point on a coordinate plane, typically in the form (x, y).