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Question
Scenario 5.4:Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and pay-offs are given below:
| Outcome | Probability | Pay-offs |
| A | .3 | $100 |
| B | ? | 50 |
| C | .2 | ? |
The expected value of the investment is $25. Although all the information is correct, information is missing.
Refer to Scenario 5.4. What is the variance of the investment?
A) -75
B) 275
C) 3,150
D) 4,637.50
E) 8,125
Answer
This answer is hidden. It contains 1 characters.
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