Suppose That There Is a 25% Chance That an Investment

question 21

Multiple Choice

Suppose that there is a 25% chance that an investment of $1,000 will rise in value to $1,400,a 25% chance that the investment will remain at $1,000,and a 50% chance that the investment will fall in value to $900.What is the expected profit associated with the investment?

• A) $25
• B) $50
• C) $75
• D) $100

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Definitions:

U.S. Exports

Goods or services sent from the United States to other countries for sale or trade.

Federal Power

The authority held by the central or national government of a federal state, distinct from that of its constituent units.

Territory Acquisition

The process or act of obtaining new lands or jurisdictions, often through conquest, purchase, annexation, or inheritance.

Jefferson

Thomas Jefferson, an American Founding Father, the principal author of the Declaration of Independence (1776), and the third President of the United States (1801–1809), known for his contributions to the principles of democracy.