Probability on return on investment

Reference no: EM13103719

If one investment can give you $1200 with a probability of .20 and you could lose $800 with a probability of .80, and another investment can give you $600 with a probability of .70 and a loss of $300 with a probability of .30, which investment is better?

My answer is:

The second investment opportunity because it is more likely to yield a positive return.

What is your answer and why?

Reference no: EM13103719

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