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

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Definitions:

Amniocentesis

A medical procedure used in prenatal diagnosis, involving the extraction of a small amount of amniotic fluid surrounding the fetus using a needle through the abdominal wall, to test for genetic disorders and other conditions.

Amniotic Fluid

The fluid surrounding a fetus within the amniotic sac, providing protection and facilitating the exchange of nutrients, water, and biochemical products between mother and fetus.

Lab Testing

The analysis of bodily fluids, tissues, or other substances in a controlled environment to diagnose disease, measure progress, or guide treatment.

Chorionic Villus

Tiny, finger-like projections found in the placenta, involved in nutrient exchange between mother and fetus.