Suppose That There Is a 75% Chance That an Investment

question 28

Multiple Choice

Suppose that there is a 75% chance that an investment of $1,000 will rise in value to $1,500,and a 25% chance that the investment will fall in value to $700.What is the expected return on the investment?

• A) -$125
• B) $25
• C) $200
• D) $300

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Definitions:

After Age 50

A life stage that can signify different experiences across cultures, including the approach of retirement, changes in health status, and shifts in social roles.

Mean-Level Change

A statistical measure that refers to the change in the average score of a given variable over time across a population.

Rank-Order Consistency

The principle that individual differences in personality traits remain relatively stable over time.

Cross-Sectional Study

A type of observational research that analyzes data from a population, or a representative subset, at a specific point in time.