### Probability Assessment for Investment OpportunitiesA venture capitalist, looking to invest $1,000,000, has three options to consider. Let's analyze each investment choice in terms of its potential returns and associated probabilities:1. **Investment in a Software Company:** - 7% chance of returning $4,000,000 profit. - 23% chance of returning $1,500,000 profit. - 70% chance of losing the million dollars.2. **Investment in a Hardware Company:** - 8% chance of returning $4,000,000 profit. - 26% chance of returning $1,500,000 profit. - 66% chance of losing the million dollars.3. **Investment in a Biotech Firm:** - 8% chance of returning $8,000,000 profit. - 21% chance of no profit or loss. - 71% chance of losing the million dollars.### Order the Expected ValuesCalculate the expected values for each investment to determine their attractiveness. Then, order these values from smallest to largest:- [ ] first, second, third- [ ] second, third, first- [ ] third, second, first- [ ] second, first, third- [ ] third, first, second- [ ] first, third, secondThis exercise is intended to help you understand risk assessment and decision-making based on probability and expected return.

Answered: Image /qna-images/answer/46f65e9f-35c3-4aac-a05c-ca08119eabd1.jpg

Answered: A venture capitalist, willing to invest…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 13% chance of returning $11,000,000 profit, a 25% chance of returning $2,000,000 profit, and a 62% chance of losing the million dollars. The second company, a hardware company, has a 14% chance of returning $6,000,000 profit, a 39% chance of returning $3,000,000 profit, and a 47% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $6,000,000 profit, a 40% of no profit or loss, and a 53% chance of losing the million dollars.Order the expected values from smallest to largest. third, first, second third, second, first first, second, third first, third, second second, third, first second, first, third
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