An Investor Has a 35% Chance of Making $1000 and a 65

question 50

Multiple Choice

An investor has a 35% chance of making $1000 and a 65% chance of making $10 000, what is the expected payoff for this investor?

• A) $11 000
• B) $6 850
• C) $7 500
• D) $10 000

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Definitions:

Collective Identity

The shared sense of belonging to a group, which shapes the members' perceptions, actions, and interactions within the group.

Power

The capacity or ability of individuals or organizations to direct or influence the behavior of others or the course of events.

Bureaucratic Control

The influence of behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.

Behaviour

The behavior of a person or collective when responding to outside or inside triggers.