The Formula for Expected Value (EV)is ________

question 4

Multiple Choice

The formula for expected value (EV) is ________.

• A)interest rate × probability
• B)income × probability
• C)cost of risk × probability
• D)cost of risk / probability
• E)income / probability

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Definitions:

Perfectly Competitive Industry

This refers to a market structure where numerous small firms compete against each other with no single company dominating the market, selling identical products, and having easy market entry and exit.

Perfectly Competitive Firm

A business that operates in a market where there are many buyers and sellers, the products are homogeneous, and there are no barriers to entry or exit.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a specific period; calculated as the quantity sold multiplied by the sale price.

Output Produced

The total quantity of goods and services produced by a firm or economy over a specific period.