Risky Undertaking ​ Suppose You Make a $2,000 Investment in a Risky

question 42

Essay

Risky Undertaking ​
Suppose you make a $2,000 investment in a risky undertaking.There is a 50% chance that the payoff from the investment will be $5,000,a 20% chance that you will just get your money back,and a 30% chance that you will receive nothing at all from your investment. ​ ​
-{Risky Undertaking Narrative} If you invest $6,000 in the risky undertaking instead of $2,000 and the possible payoffs triple accordingly,what are the expected value of the net profit from the $6,000 investment?

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Definitions:

Chromatid

One-half of a chromosome; separates from its partner during cell division.

Centromere

The part of a chromosome that links sister chromatids or the point where the two halves of a replicated chromosome are joined.

Proteins

Large biomolecules consisting of one or more long chains of amino acid residues, crucial for structural, enzymatic, and regulatory functions in living organisms.

Chromatid

One of the two identical halves of a duplicated chromosome, joined together at their centromeres before cell division.