Respuesta :
Answer:
Option C.
Step-by-step explanation:
The original value of Investment = $3,000
It has a 10% chance of ending up with a value of $2,000.
Chances of loss of $1000 = 0.1
It has a 80% chance of ending up with a value of $3,500.
Chances of profit of $500 = 0.8
It has a 10% chance of ending up with a value of $4,000.
Chances of profit of $1000 = 0.1
Expected change in the value of investment is
[tex]Change=(-\$1000)(0.1)+(\$500)(0.8)+(\$1000)(0.1)[/tex]
[tex]Change=-\$100+\$400+\$100[/tex]
[tex]Change=\$400[/tex]
The expected change in the value of the investment is $400.
The expected value of an original Investment of $3,000 is
[tex]\$3000+\$400=\$3400[/tex]
Therefore, the correct option is C.
